(C) Welcome | Natuurkunde [TM]- Wiskunde (R)

Mr President, Ladies and Gentlemen, It is a great privilege to deliver the first State of the Union address to your Assembly. This State of the Union address will now be an opportunity for us to plan our work for the next twelve months. Many of the decisions we will make this year will have long-term consequences. They will shape the Europe we want. They will shape a Europe of possibilities, where those with ambition can rise up, while those in need will not be left behind. A Europe open to the world and open to its inhabitants. A Europe that guarantees economic, social and territorial cohesion. During the past year, the economic and financial crisis has confronted our Union with one of the greatest challenges it has ever known. Our interdependence was underlined, and our solidarity was tested as never before. When I see, in retrospect, how we reacted, I think we overcame this ordeal. We have provided many of the solutions required – granting financial assistance to Member States facing exceptional circumstances, improving economic governance, deepening financial regulation, promoting growth and jobs – and we have managed to build a solid foundation from which to launch the modernization of our economies. Europe has shown that it has the will to respond. Those who predicted the debacle of the European Union have been denied. The European institutions and the Member States have taken courageous initiatives. I address to every European the following message: have the certainty that Europe will do what is necessary to secure your future. Economic prospects in the European Union are better today than a year ago, thanks in large part to our determined action. The recovery is accelerating, even if its pace is not uniform across the Union. Growth in 2010 will be greater than initially expected. The unemployment rate, although still far too high, has stopped rising. It is clear that uncertainties and risks continue to weigh on the recovery, especially outside the European Union. Let's not delude ourselves: our task is far from complete. We cannot rest on our laurels. Fiscal expansion has had the desired effect in countering the decline in economic activity, but now is the time to get out of it. Without structural reforms, we will not generate sustainable growth. We must use the next twelve months to accelerate the reform agenda. The time has come to modernize our social market economy to make it globally competitive and able to meet the demographic challenge. Now is the time to make the investments required for the future. This is the hour of truth for Europe. It must show that it is more than 27 national solutions. Either we act together or we sink one by one. Whether we act at national, regional or local level, we will only succeed if we think European. I am going to present to you today what I consider to be the common priorities of our two institutions for the coming year. It is impossible for me to address here all the aspects of European policy, or to present to you each of the initiatives that we will take, so I have sent you, through President Buzek, a more complete programmatic document. I see essentially five major challenges that the Union will have to take up over the next twelve months: combating the crisis and improving economic governance; boosting growth for jobs by accelerating the implementation of the 'Europe 2020' reform programme; build an area of freedom, justice and security; launch negotiations for the modernization of the Union's budget, and assume our share of responsibility in the world. Let me start with the economic crisis and governance. A few months ago, we acted with determination when the members of the euro zone, and the euro itself, needed our support. We have learned a hard lesson. We are now making considerable progress in economic governance. The Commission presented its ideas last May and June. They were well received, both in this assembly and by the Task Force led by the President of the European Council. They constitute the base on which a consensus is being built. We will present the most urgent legislative proposals on September 29, so as not to lose the rhythm. Unsustainable budgets make us vulnerable. The debt and the deficit create cyclical instability, and they undo the net of social protection. The money spent on servicing the debt cannot be spent on social welfare. Nor to prepare us to assume the cost of demographic ageing. A generation in debt jeopardizes the future of the nation. Our proposals tend to strengthen the Stability and Growth Pact through increased budgetary surveillance and stricter constraints. We must also work to resolve the serious macroeconomic imbalances, particularly in the euro area. This is why we have presented upstream proposals aimed at detecting speculative bubbles, lack of competitiveness and other imbalance factors. I see today that national governments are ready to accept closer monitoring, with incentives for compliance, as well as earlier sanctions. The Commission will strengthen its own role as independent arbiter and guarantor of compliance with the new rules. We will make the monetary union a true economic union. If implemented as we propose, these reforms will also ensure the long-term stability of the euro, key to our economic success. To ensure the growth of our economy, we also need a robust and healthy financial sector. A sector that serves the real economy. A sector that can pride itself on being adequately regulated and supervised. We have taken steps to increase bank transparency. Today we are doing better than a year ago. With the publication of the results of the stress tests, banks should now be able to lend each other funds, so that EU citizens and businesses can access credit. We proposed to protect the savings of each citizen up to 100,000 euros. We will propose to ban abusive short selling. We will focus on credit default swaps, better known as credit default swaps. The time when one could bet on the ruin of others is over. We continue to insist that banks, not taxpayers, have an obligation to fund their own risk of default upstream. We are legislating to ban bonuses that reward short-term gains today that will be tomorrow's heavy losses. As part of this approach, I also argue in favor of taxing financial activities. We will be submitting proposals this fall. The political agreement which has just been concluded on the financial supervision package is very good news. The Commission's proposals, based on the de Larosière report, will provide us with a genuine European monitoring system. I would like to thank Parliament for its constructive role, and I hope that it will give its final approval in September. We will also deepen the regulatory aspect. Initiatives concerning derivatives, new measures on rating agencies as well as a framework concerning the liquidation of banks and the management of banking crises will be submitted to you shortly. Our objective is to fully complete the reform of the financial sector by the end of next year. Sound public finances and responsible financial markets give us the confidence and economic strength needed for sustainable growth. We need to move beyond the artificial debate between fiscal consolidation and growth. We can have both. Ladies and Gentlemen, Sound public finances are a means to an end: growth for employment. Our goal is growth, sustainable growth, inclusive growth. This is our main priority. This is where we need to invest. L' Europe 2020 starts today. We must advance and accelerate the most growth-enhancing reforms on our agenda. The level of growth could thus be raised by more than a third by 2020. This means focusing on three priorities: increasing the number of active workers, boosting the competitiveness of our companies and deepening the single market. Let me start with citizens and jobs. Since 2008, more than 6.3 million people have lost their jobs. Each of them should be offered the opportunity to find an activity. The average employment rate in Europe is around 69% for workers aged 20-64. We have decided that it should be increased to 75% by 2020, in particular by integrating more women and older workers in the labor market. Member States retain most competences in employment policy. But we will not be on the sidelines. I want a European Union that helps its citizens seize new opportunities, and I want a Union that is both social and inclusive. It is this Europe that we will build if the Member States, the European institutions and the social partners move forward with our common program of reforms. This should focus on skills and employment, as well as investment in lifelong learning. It will also have to release the growth potential of the single market, to give vigor to the single labor market. The prospects of jobs exist. Unemployment is reaching very high levels, yet four million jobs are to be filled in Europe today. The Commission intends to propose, later this year, an 'Observatory of vacancies within the Union'. European citizens will thus know where jobs are offered in Europe and what qualifications are required. We will also propose projects for a 'European qualifications passport'. We will also have to tackle the problems of poverty and exclusion. We must ensure that the most vulnerable are not left behind. This is the main focus of our "European Platform against Poverty". It will bring together European actions in favor of vulnerable groups such as children and the elderly. As more people travel, study or work abroad, we will also strengthen citizens' rights when crossing borders. As of this autumn, the Commission will examine the remaining obstacles. Ladies and Gentlemen, Growth must be based on the competitiveness of our businesses. We must continue to make life easier for our small and medium-sized businesses. These provide two out of three jobs in the private sector. The need to innovate and the burden of administrative formalities being among their major concerns, we are currently focusing on helping them in these two areas. Just before the summer, the Commission announced the granting of the largest envelope ever granted under the seventh research framework programme, amounting to 6.4 billion euros. These funds will be intended for SMEs as well as scientists. Investing in innovation also means promoting internationally renowned universities in Europe. I want to see our universities attract the best students and teachers, from Europe and the rest of the world. We will therefore take an initiative on the modernization of European universities. I call for a strong Europe in science, education and culture. We need to improve Europe's innovation performance not just in universities, but across the innovation cycle, from research to commercialization, especially in the context of partnerships. We need an Innovation Union. The Commission will present the means to achieve this next month. The will of the Member States to progress towards a European patent, valid throughout the European Union, will also be decisive in this respect. It is not uncommon, in fact, that our innovators have to pay ten times more than their competitors in the United States or Japan. Our proposal is on the table. It would radically reduce costs and double the number of inventions protected by a patent. After decades of discussions, it is time to make a decision. We will also continue our action to reduce administrative formalities, which literally crush our SMEs. 71% of CEOs say bureaucracy is the biggest barrier to business success. The Commission has presented proposals which should allow European companies to save 38 billion euros per year. It is by stimulating innovation, reducing bureaucracy and providing ourselves with a highly qualified workforce that we can ensure that European industry remains globally competitive. The existence of a thriving industrial base in Europe is of paramount importance for our future. Next month the Commission will present a new industrial policy for the era of globalisation. We have the people, we have the companies. What we lack is an open and modern single market. While the internal market is indeed Europe's greatest asset, we are not exploiting it enough. We urgently need to deepen it. Only 8% of Europe's 20 million SMEs trade cross-border, and even fewer make cross-border investments. Even in the area of the internet, more than a third of consumers do not feel confident enough to make cross-border purchases. At my request, Mr Mario Monti presented a report in which he identified 150 missing links and bottlenecks which hamper the functioning of the internal market. Next month we will present our views on how to deepen the single market, in a global and ambitious legislative proposal, the "Single Market Act". The energy sector, as a key driver of growth, is a priority area for action: we must complete the internal energy market, build and interconnect networks and guarantee energy security and solidarity. We must do, in the field of energy, what we have already done for mobile telephony: give consumers a real choice, in a single European market. We will thus have a real energy community in Europe. Gas pipelines and high voltage lines should know no borders. We must have the necessary infrastructure to exploit solar and wind energy. It is also important to establish a European standard so that charging the batteries of an electric car becomes as natural as filling up with fuel. Next year we will present an energy action plan, an energy infrastructure package and an energy efficiency action plan to implement this . As for me, I will be going to the Caspian Sea region at the end of the year to promote the Southern Corridor, which would allow us to strengthen our security of supply. For Europe to use its resources efficiently, we need to look beyond energy. In the 20th century, the world experienced extraordinary growth, but one that put a heavy demand on natural resources. The population has quadrupled and the growth of economic output has increased 40 times. However, at the same time, fossil fuel use has increased 16 times, fish catches have increased 35 times, water consumption has increased 9 times. and our carbon emissions by 17. We now need to implement the Climate and Energy Package, one of the key drivers of change. This means integrating the various measures relating to climate change, energy, transport and the environment into a coherent approach to the efficient use of resources and a low-carbon future. A forward-looking agricultural sector will play a leading role in European measures to tackle some of the greatest challenges ahead, including global food security, biodiversity loss and sustainable management of natural resources. The same goes for our maritime policy. All of these actions will not only strengthen our economy in the long term, but will also create immediate opportunities. Since 2000, jobs in the eco-industry have grown by 7% annually. By 2020, I want to reach the bar of three million “green jobs”, in addition to our blue collars and our white collars. If we need green growth, we also need “smart” growth. Over the past fifteen years, half of Europe's productivity growth has been driven by information and communication technologies. This trend should continue to strengthen. Our Digital Agenda for Europe will enable us to create a digital single market representing 4% of EU GDP by 2020. Ladies and Gentlemen, Everything we do, we do for European citizens. One of the fundamental dimensions of our European project is precisely the construction of an area of freedom, security and justice. We are sparing no effort to implement the Stockholm Program Action Plan. We will propose real progress on asylum and immigration issues. Legal immigrants will find in Europe a space in which human values are respected and protected. At the same time, we will vigorously suppress the exploitation of illegal immigrants within Europe and at our borders. The Commission will make new proposals on the control of the external borders. And we will also present an internal security strategy aimed at dealing with the threats of terrorism and organized crime. Europeans will retain their fundamental rights and obligations wherever they go. Every European must respect the law and governments must respect human rights, including those of minorities. Racism and xenophobia have no place in Europe. On such sensitive issues, when a problem arises, we all have to be responsible. I urge not to awaken the ghosts of our past. A space of freedom, justice and security will give Europeans a place to thrive. Ladies and Gentlemen, Another challenge awaiting us is to define the contours of the future budget of the European Union. Next month, the Commission will present its first thoughts on the budget review. It will open a debate without taboos, with a view to drawing up its legislative proposals, which it will produce in the second quarter of next year. We need to direct our spending to areas where it will generate the greatest added value. Our investments must promote growth and serve the objectives of the European agenda. The quality of spending must be our criterion for action. It is therefore important to examine not only the quantity of expenditure and investment, but also their quality. I am sure that Europe offers real added value. I will therefore support, for after 2013, an ambitious budget for Europe. I firmly believe that we must pool our resources to serve our political priorities. The question is not to spend more or less, but to spend more intelligently, considering the European budget and the national budgets from the same angle. The EU budget is not at the service of 'Brussels', it is at the service of those you represent: the unemployed, whose retraining is financed by the Social Fund, the students, who take part in the Erasmus programme, the regions, which benefit from the Cohesion Fund. Energy interconnections, research development and development aid are obvious examples of sectors where a euro spent at European level produces more than a euro spent at national level. Some Member States see the logic of this reasoning even in areas that fall within basic national competences, such as defence. They recognize the magnitude of savings they could achieve by pooling some of their resources and activities. Pooling resources at European level enables Member States to reduce costs, avoid duplication of effort and obtain a better return on investment. That is why we should also explore new sources of funding for major European infrastructure projects. For example, I intend to propose the creation of European bond loans for the financing of projects (“EU project bonds”), in collaboration with the European Investment Bank. We will also further develop public-private partnerships. As Parliament has made clear to us, we also need to address the issue of own resources. The current system is stretched to the limit – and it's only held together by a convoluted set of fixes. Our fellow citizens deserve a fairer, more efficient and more transparent system. Admittedly, not everyone will share all the ideas we will present. I also find it extraordinary that some people are already rejecting them, even before knowing their content. I know that one of Parliament's concerns is the length of the next budget horizon. There are several options. I would like to see a 10-year budgetary framework with a review of the financial dimension after five years – that would be the 'five plus five' option. We would thus have longer-term planning, more clearly linked to the duration of the mandates of our two institutions. Obviously, the credibility of the European budget depends in part on the rigorous pursuit of savings efforts. I am currently examining the administrative costs of the Commission and other Community bodies, such as the agencies. We must eliminate all pockets of inefficiency. The recommendations of the Court of Auditors will inspire our efforts to improve financial management. Ladies and Gentlemen, The last challenge I would like to talk to you about today today is how we take responsibility for the world. Faced with our daily difficulties, we sometimes lack perspective and forget what we have accomplished. A peaceful and successful transition to a European Union which has doubled in size and is negotiating new memberships; a solid currency, the euro, the world's leading currency; a close partnership with our neighbours, which strengthens us all. If we act firmly, we have nothing to fear from the 21st century. As the strategic partnerships of the 21st century emerge, Europe must seize the opportunity to define its future. I look forward to seeing the Union play a role in international affairs that matches its economic weight. Our partners are watching us and want us to act as one European entity, not just as 27 separate countries. If we do not work together, Europe will not be a world power and our partners will move forward without us: without the European Union, but also without its Member States. This is why I have, in my political guidelines, called on Europe to be a global player, a leading international player, which constitutes both a mission and a key challenge for our generation. The High Representative of the Union and Vice-President, Mrs Ashton, and I will together set out our vision of how we can optimize Europe's role in the world. The European service for external action offers us the means to respond to our aspirations. In the era of globalization, the relationships we establish with strategic partners condition our prosperity. To be effective on the international scene, we need the weight of the European Union. Size matters, now more than ever. The fight against climate change is a good example. The Copenhagen summit showed us that, if some people did not have the same ambitions as us, we had not worked in our interest by not speaking with one voice. Negotiations may be stalled, but climate change continues. I want us to step up our work with international partners to translate their press releases into credible commitments to reduce emissions, and to promote fast-start finance. The next two months will see crucial summits with strategic partners. The achievement of our objectives will depend on our ability to set a common timetable with a clearly defined European interest. Thus, the elaboration of a transatlantic program in favor of growth and employment seems to me to offer immense prospects. It is within the G20, a forum in which the world's leading economic players take up common challenges, that we already carry all our weight. When President Van Rompuy and I go to Seoul in November to represent the European Union, it will be to achieve concrete results: New progress in global economic coordination. More stable and responsible financial markets; an agreement on the reform of international financial institutions. More effective global financial safety nets. Further progress in shaping a G20 development agenda. We will continue to take initiatives within this body and will cooperate closely with the French presidency of the G8/G20 next year. We also hope that the Doha round of negotiations will be well received. Trade drives growth and prosperity. We will also strive to conclude bilateral and regional free trade agreements. In October, the Commission will present a revised trade policy bringing new benefits for Europe. Openness to the world also means standing alongside developing countries, and Africa in particular. When I go to the high-level meeting on the Millennium Development Goals in New York in two weeks' time, I intend, with your support and on behalf of the European Union, to allocate an additional EUR 1 billion for the Millennium Development Goals. Our status as a global player also means defending our values. Human rights are not negotiable. I am shocked by the way women's rights are violated in many countries. I am appalled to learn that Sakineh Mohammadi Ashtiani has been sentenced to death by stoning. These practices are unspeakably barbaric. In Europe, we condemn such acts which find no justification under any moral or religious code. Our values also mean that we should help people in crisis anywhere in the world. Our humanitarian aid to Pakistan is the latest example of a united Europe at work. It is a clear example of the need to present the various contributions from the Commission and the Member States as a genuine European aid programme. Member States have helicopters and civil protection teams. We now need to bring them together in a genuine European system for responding to crisis situations. This is the content of the proposal that the Commission will make in October. I urge Member States to show that they are determined for the European Union to bring its full weight to bear in this area. We are progressing on the road to a common foreign policy. Let us not kid ourselves, however: without a common defense policy, we will not have the influence in the world that we need. I am convinced that the time has come to tackle this challenge. Ladies and Gentlemen, We have not finished putting in place the new institutional architecture of Europe resulting from the Treaty of Lisbon. What really matters is what the institutions bring to the people. What matters is what Europe changes in the daily lives of our fellow citizens. The secret of European success lies in its community model, which is unique. More than ever, it is up to the Commission to determine the political priorities by presenting its vision and its proposals. I called for a special relationship between the Commission and Parliament, the two Community institutions par excellence, and I am intensifying my political cooperation with you. Europe is not limited to Brussels or Strasbourg: Europe is our regions, it is your small and large towns and your villages. When you survey your constituency, you can easily point out the European projects which are of real importance for the prosperity of the place. Ultimately, we are all, European institutions, Member States and regions, in the same boat: the European Union will not achieve the objectives it has set itself in Europe without the Member States, just as the Member States members will not achieve without the European Union the objectives they have set for themselves in the world. Ladies and Gentlemen, European citizens expect us to take the necessary measures to get out of this crisis. We need to show them that our joint efforts today will lead tomorrow to new jobs, new investments, and a Europe fit for the future. I I am sure that Europe is capable of rising to the challenge. We will get the desired results. One thing is certain: it is not by showing pessimism that we will win this battle, but only if we are confident and show a strong common will. I have told you today how I believe the European Union can do this. I am committed to presenting the proposals required to build our economic union. I have presented to you the arguments that justify accelerating our reform programme. I have outlined how to modernize our social market economy to create growth and jobs in a smart, sustainable and inclusive economy through our Europe 2020 flagship initiatives. outlined how we can establish a common energy policy in Europe. I defended the need for an area of freedom, security and justice in which Europeans can verify that their rights and obligations exist wherever they go. I have made it clear that the Commission will strive to secure the adoption of an ambitious budget. I proposed creating European bond loans intended for the financing of projects, with a view to financing major European projects. I have told you of our renewed commitment to the Millennium Development Goals. I demonstrated all the benefits of setting up a European mechanism for responding to crisis situations, as well as a common foreign policy and defense policy. Finally, I urged European leaders to act together if they want Europe to be a global player and if they want to defend the European interest. It is a truly ambitious and stimulating programme, which is inducing profound change. For Europe to succeed, the Commission needs your support, for a stronger, fairer Europe at the service of our fellow citizens. Thank you. Mr. President, Ladies and Gentlemen, Mr. Minister, We must be honest and absolutely clear in our analysis of the state of the Union. We are now facing the greatest challenge that our Union has known, I believe, in its entire history. It is a financial crisis, economic and social. But also a crisis of confidence. Both with regard to our leaders in general, to Europe itself, and to our ability to find solutions. The causes of the crisis are known: Europe has not responded to the challenges of competitiveness. Some of our Member States have lived beyond their means. In the financial markets, there have been irresponsible and unacceptable behaviors. We have allowed imbalances to grow between our Member States, particularly in the euro area. And the earthquakes that are shaking the international order, the pressures of globalization have further aggravated the situation. And the result is there: our societies are experiencing serious concerns. Many of our citizens are afraid of the future. There is as never before a danger of national withdrawal, not to say nationalist. Populist responses challenge the great achievements of the European Union: the euro, the single market, and even the free movement of people. I think it can be said that the sovereign debt crisis today is above all a crisis of political confidence. And our citizens, but also the outside world, are watching us and asking themselves – are we really a Union? Do we really have the will to support the single currency? Are the most vulnerable Member States determined to make the necessary reforms? Are the more prosperous Member States really willing to show solidarity? Is Europe really capable of achieving growth and generating jobs? And I tell you today: Yes, it is a serious situation, but there are solutions to this crisis. Europe has a future. If we restore trust. And to restore confidence, we need stability, growth, but also political will, political leadership. It is together that we must offer our citizens a European renewal. We need to translate into action what we noted in the Berlin declaration, signed by the Commission, by Parliament, by the European Council on the occasion of the fiftieth anniversary of the signing of the Treaties of Rome - we said to the time “Wir leben heute miteinander, wie es nie zuvor möglich war. Wir Bürgerinnen und Bürger der Europäischen Union sind zu unserem Glück vereint.” “Today we live united, as never before we have been able to do this in the past. Our chance for us, citizens of the European Union, is to be united.” It's a statement, and words matter. We must translate this will into the courage of each day. With our institutions, not against them, we can succeed. For some, as we know, it is the need for stability that prevails. For others, it's growth. Well! I tell you that we need both. Some preach discipline. Others solidarity. Well! We need both. It is no longer a question of piecemeal, partial solutions. We need a determination for global solutions. Greater ambition for Europe. I truly believe that today we are at a turning point in our history. One of those moments when, if we do not move forward in integration, we risk fragmentation. It is therefore a question of political will, a trial by fire for our entire generation. And I tell you yes: it is possible to get out of this crisis. Not only is it possible, but it is necessary. And that is what political leadership is, making possible what is necessary. Ladies and Gentlemen, I will start with Greece. Greece is and will remain a member of the euro zone. It must therefore honor all its commitments, according to the schedule. In return, the other members of the euro zone have pledged to support Greece and help each other. As the members of the eurozone meeting at their summit on July 21 said: “We are committed to continuing to support program countries until they can re-enter the market, provided they successfully implement these programs.” This is why I set up the task force for Greece. We have just launched an action plan, articulated around two major axes: a hundred viable and quality projects, with investments in all the regions of the country, so as to make optimal use of the resources still available, under EU structural funds, in favor of Greece, and a major effort to simplify bureaucratic procedures for projects benefiting from EU co-financing. There are 15 billion left euros to be spent in Greece under the structural funds. These resources will support the Greek economy by urgently setting up a technical assistance program for the administration. A program of 500 million euros, intended to guarantee loans from the European Investment Bank to Greek SMEs, is already being implemented. The Commission is also considering creating a broader guarantee mechanism that would encourage banks to reinject funds into the real economy. All these measures constitute an impressive aid, intended to support Greece's efforts to get out of its difficulties. Greece will therefore have to produce tangible results. It will have to renounce counterproductive practices and resist pressure from interest groups. But make no mistake! We are not engaged in a simple sprint, but in a real marathon. The creation of a Union of stability and responsibility does not depend solely on Greece. The looming economic outlook is very poor. We are facing the negative fallout from an ongoing global risk reassessment. It is therefore up to us to restore confidence in the euro and the Union in general. To do this, we must demonstrate that we are capable of taking all the decisions necessary to manage a common currency and an integrated economy in a competitive, inclusive and efficient manner. This requires us to take measures for the short, medium and long term. The first step is to quickly find effective solutions to the sovereign debt crisis. To that end, we need stronger mechanisms for crisis resolution. The euro must be equipped with credible firepower and effective shields. We must rely on the European Financial Stability Fund (EFSF) and the future European Stability Mechanism (ESM). It is imperative to strengthen the EFSF without delay and to introduce more flexibility into it. The Commission already presented a proposal to this effect in January. This is also what the heads of state and government of the euro zone agreed on 21 July. It is only when you have ratified this reform that the EFSF will be able to: intervene preventively; contribute to the recapitalization of banks; intervene in secondary markets to help prevent contagion. Once the ratification process is finalized, we should make the most of the financial envelope of the EFSF. The Commission is studying various possibilities for this purpose. We should also make every effort to speed up the entry into force of the ESM. Of course, we are also convinced that the European Central Bank – in full respect of the Treaty – will take all necessary measures to guarantee the integrity of the euro area and to ensure its financial stability. However, we cannot be satisfied with this. We need to strengthen economic coordination and integration, especially in the euro area. This is about an issue at least as important politically as economically. Today, your assembly will vote on the 'sixpack' proposals that we presented to you and to the Council a year ago. This legislative package reforms the Stability and Growth Pact and extends surveillance to macroeconomic balances. Here we are finally back very close to what the Commission had initially presented. Thanks to your decisive contribution, these proposals have maintained their level of ambition, and I would sincerely like to thank you and congratulate you. These new provisions will give us much stronger enforcement mechanisms. We will now be able to discuss Member States' budget forecasts before decisions are taken at national level. This mixture of discipline and integration is decisive for the future of the euro zone. The euro zone will only be truly credible if we strengthen integration and discipline. Ladies and Gentlemen, These measures do indeed represent significant progress, but we must go even further. We must complete our monetary union by creating an economic union. We must fully achieve the objectives agreed in Maastricht. It was an illusion to think that we could share a common currency and a single market by implementing economic and budgetary policies based on national approaches. Let's not fool ourselves again into thinking that we can share a common currency and a single market in an intergovernmental framework. To guarantee the credibility of the euro zone – and it is not only the federalists who are calling for this, but also the markets – we need a genuinely Community approach. We must achieve real integration of the euro area, and complement monetary union with real economic union. But how can we lay the foundations for this truly community-based approach, you ask? Over the next few weeks, the Commission will complete the 'six pack' with a proposal for a single, coherent framework aimed at strengthening economic coordination and integration, notably in the euro area. This framework will be designed to ensure compatibility between the euro area and the Union as a whole. It goes without saying, in fact, that the euro area must not call into question the precious acquis of the single market or any of our four freedoms. At the same time, we can also take joint decisions to improve our competitiveness. To this end, we could integrate the Euro Plus Pact into this framework, in full respect of national implementing powers. To ensure the proper functioning of this system, we need more than ever the independence of the Commission in order to propose and assess the actions that Member States should take. Because, let's be honest, governments cannot fulfill this role alone. Nor can such decisions be taken through intergovernmental negotiations. Indeed, within the framework of the powers conferred on it by the Treaty, the Commission is the de facto economic government of the Union, and we certainly do not need any other institutions to take on this role. It is not by chance that the treaties have set up supranational institutions. It is not by chance that the European Commission, the European Central Bank, the European Court of Justice were created. The Commission is the guarantor of fairness. Moreover, the Commission, which naturally works in partnership with the Member States, is elected by your assembly, to which it is responsible, and which is the directly elected parliament of the euro area and of the European Union as a whole. Ladies and Gentlemen, It is also time for us to have an external representation of the euro zone. The Commission, in accordance with the Treaty, will submit proposals to this effect. A Union of stability and responsibility, built on this foundation and driven by a common approach, will also enable Member States to reap the full benefits of a larger market for the issuance of sovereign debt. When the euro area is equipped with all the necessary instruments to ensure both integration and budgetary discipline, the common issuance of debt will be seen as a natural and beneficial development for all. But this requires that these Eurobonds are “stability bonds”: bonds designed to reward those who apply the rules and deter others from deviating from them. As I have already announced before this assembly, the Commission will present options for these 'stability bonds' in the coming weeks. Some of these options can be implemented within the framework of the current treaty, while the Eurobonds themselves would require modification. And that is a major clarification, ladies and gentlemen, because we have a lot of room for action under the current Treaty of Lisbon. And we would have no excuse not only not to act, but also not to act now. However, further treaty changes may need to be considered. I am also thinking, in particular, of the constraint of unanimity. The pace of our common commitment cannot be dictated by the slowest. However, in today's Union, it is the slowest member that determines how fast all other member states can move forward. It's not believable, including from a market perspective, so we have to solve this decision-making problem. Any Member State is, of course, free not to accept certain decisions. It is a question, as they say, of national sovereignty. However, a Member State does not have the right to impede the progress of the others, which also have national sovereignty; and if those wish to go forward, they must do so. Our readiness to consider a Treaty change must not be a means or a pretext to delay the reforms that are needed today, but I believe that this longer-term perspective will have the immediate effect of reinforcing the credibility of our decisions. Making the Union an area of stability and accountability means that work on a new regulatory regime for the financial sector must be completed quickly. We need well capitalized, responsible banks able to finance the real economy. There has been a lot of talk about the alleged vulnerability of some of our banks. However, European banks have considerably strengthened their financial position over the past year. They are now raising capital to fill pockets of vulnerability detected by bank stress tests over the summer. It is a sine qua non condition if we want to limit the negative impact of financial market turbulence on the real economy and on employment. Over the past three years, we have designed a new system of financial regulation. Let me remind you: we have already proposed 29 legislative instruments. You have moreover adopted several of them, including those concerning the creation of independent supervisory authorities, which are already at work. It is now important to approve our proposals for new regulations on: derivatives; naked short selling and credit default swaps (CDS); fair compensation for bankers. These proposals exist; they must be adopted by the Council and the Parliament. The Commission will present the other proposals by the end of this year, regarding regulations on: rating agencies; bank resolution funds; the personal liability of financial operators. We will thus be the first G20 participant to fulfill its commitment to contribute to a global effort of financial regulation. Ladies and Gentlemen, Over the past three years, Member States – taxpayers, I should say – have granted EUR 4.6 trillion in aid and guarantees to the financial sector. It is time that the latter in turn contributes to society. I am therefore very proud to announce that the Commission today adopted a proposal for a tax on financial transactions. I am submitting to you today a text of the utmost importance which, if implemented, is likely to bring in more than 55 billion euros per year. Some will ask: “why?”. Why? It is a matter of fairness. If our farmers, our employees, if all sectors of the economy, from industry to services via agriculture, pay their share to society, it would be right for the banking sector to do the same. And if fiscal consolidation is a necessity – because fiscal consolidation is a necessity, if we need more revenue, the question is where to get that revenue. Are we going to impose more work? Are we going to tax consumption more? I think it is fair to tax financial activities which, in some of our Member States, are not not make a contribution to society commensurate with their weight. But financial institutions are not the only ones to have to take a fair share of this effort. We cannot afford to turn a blind eye to tax evasion. This is why our proposals on the taxation of savings in the European Union must be adopted without delay. I also call on the Member States to finally give the Commission the mandate it is asking for to negotiate bilateral tax agreements between the European Union and third countries. Ladies and Gentlemen, Stability and responsibility alone are not enough. We need not only stability, but also growth. We need not only responsibility, but also solidarity. L' economy can only remain strong if it generates growth and jobs. That is why we must unleash the potential of our economy, especially the real economy. Current economic forecasts point to a significant slowdown. However, strong growth in Europe is not an impossible dream. Of course, it won't come back overnight with the wave of a magic wand, but we can create conditions conducive to recovery. We've been there before. We must and we can do it again. True, we have little room for fiscal stimulus, but that doesn't mean we can't do more to foster growth. It is important, first of all, that those who have a certain budgetary margin study the possibilities available to them, but without putting a strain on their budgetary situation in the long term. Secondly, all Member States must promote structural reforms so that we can strengthen our global competitiveness and thus promote growth. Finally, it is together that we can and must exploit the potential of the single market, reap the benefits of trade and mobilize investment at Union level. I will start with the single market. Full implementation of the Services Directive alone could, according to our estimates, generate economic gains of up to €140 billion. However, today, two years after the transposition deadline, it is clear that several Member States have still not adopted the necessary legislative provisions. We therefore do not benefit from all the gains that a true liberalization of services in Europe could generate, but here again we can do more. We must adopt the proposals that are on the table. The European Commission has adopted the Single Market Act. Several key initiatives are ready. We are very close to having a European patent, which would reduce the cost of protection to 20% of current costs. I expect this issue to be resolved by the end of the year. Furthermore, with regard to the Single Market Act, we should consider an accelerated legislative procedure. Such a procedure should elsewhere be applied in many areas given the real emergency situations we are currently facing. This would allow us to react to the extraordinary circumstances in which we find ourselves. Moreover, future growth will increasingly depend on our use of information technology. We need to put in place a single digital market which, by exploiting the possibilities of online commerce or even by abolishing roaming charges in the field of mobile telephony, should allow each European to save around 1 500 euros per year. A 10% increase in broadband penetration would allow us to achieve 1 to 1.5% additional annual growth. In an increasingly competitive environment, we must also be well trained, that is to say possess the necessary skills to meet the new challenges that come our way. We must innovate and make our actions sustainable. We have already presented detailed proposals regarding innovation, the efficient use of resources and how we can strengthen our industrial base. A modern industrial policy is indeed synonymous with investment in research and innovation. We need to intensify our efforts to promote the financing of young innovative European companies through venture capital. If we focus on innovation and new technologies, including green technologies, sustainable jobs will follow. We need to understand that the “green” economy and growth go hand in hand. 300,000 jobs have thus been created in the renewable energy sector over the past five years in the European Union. The global market for green technologies will triple over the next ten years. We must focus our efforts primarily on areas where their impact will be effective. To foster future growth, we must also actively pursue the implementation of our smart regulation agenda, which will save European businesses, especially SMEs, €38 billion a year. However, Member States must also play the game by reducing the administrative burden. But we also need investment. If these reforms are important, we also need to mobilize investment at Union level. A Union of growth and solidarity requires modern and interconnected infrastructures. For the next multiannual financial framework, we have proposed to create a financial facility with a view to connecting Europe in the fields of energy, transport and digital technology. This innovative aspect of our proposal for a multiannual financial framework must be considered in the light of another innovation: the bond loan for the financing of projects. In the coming weeks, the Commission will publish its proposals relating to European bond issues for the financing of projects. We also offer pilot projects so that we can finance this growth. These can be implemented even before the adoption of the multiannual financial framework. This would enable us to make several of the major infrastructure investments that Europe needs without delay. The Union and its Member States must urgently explore ways to enable their own policy-funding bank, the European Investment Bank, to do more – if not much more – to fund long-term investment. We therefore need to find ways to strengthen the resources and the financial base of the EIB so that it is able to inject funds into the real economy. In 2000, venture capital in Europe amounted to 22 billion euros. In 2010, this figure was only 3 billion. If our ambition is to promote business creation, it is up to us to reverse this trend. This is particularly in the interest of SMEs. Growth could also be driven more by the Structural Funds, if we increase absorption capacity and use them to support macroeconomic efficiency. They are an essential instrument for financing innovation, training and employment, as well as SMEs. I therefore urge your assembly to adopt, by the end of the year, the proposals that we presented in August with a view to increasing the co-financing rate for countries benefiting from an aid programme. This will allow us to inject much-needed funds into these economies, while reducing the pressure on national budgets. Ladies and Gentlemen, The reforms to be implemented in our labor markets, and in our public finances and our pension systems call for considerable efforts from every component of society. We all know that these changes are essential in order to be able to reform our social market economy and maintain our social model. But we must imperatively preserve the values that are ours, namely equity, inclusion and solidarity. Currently, one in five young people cannot find a job and our pressing duty is to give them concrete hope. In some countries, young people find themselves in a simply dramatic situation. I appeal to our companies to make special efforts to offer them internships or apprenticeship opportunities. The European Social Fund can help them in this regard. We can make a difference by bringing businesses, social partners, national and EU authorities together in an initiative that could be called 'Job opportunities for young people'. This, I am convinced, is the most pressing social issue: responding to the concerns of young people who cannot find work. It is far better to provide them with learning opportunities or traineeships than to see them take to the streets and express their anxieties by showing distrust of the Union as a whole. We must accelerate the implementation of the most urgent aspects of our strategy for growth and jobs within the framework of Europe 2020. The Commission will pay particular attention to the plight of young people in each of the Member States, within the framework of the country-specific recommendations that it will formulate for next year. We must, I believe, give our future a real chance. We must act now to help the approximately 80 million Europeans who are at risk of poverty. It is therefore important that the Council finally approves our proposal to maintain the food aid program for the most deprived persons. I would also like to thank Parliament for its political support for the solution we have proposed. Ladies and Gentlemen, Fifty years ago, 12 European countries united to sign the Social Charter. It was exactly 50 years ago, in October. Today, this Charter has 47 signatories, including all the Member States. To preserve these fundamental values in Europe, I believe that we must improve the quality of social dialogue at European level. The renewal of Europe will only happen with the participation and support of all the social partners of trade unions, workers, companies and civil society in general. Let us remember that our Europe is a Europe of citizens. We all benefit from being citizens of the Union. This gives us not only a European identity and citizenship, in addition to our national citizenship, but also a whole series of rights and possibilities, and in particular the possibility of crossing borders freely and of going to study and work abroad. . Here again, we must defend, protect and develop these rights and these possibilities, like what the Commission is currently doing for the Schengen area, by putting proposals on the table. We will not tolerate any backsliding on the rights of our fellow citizens. We will defend freedom of movement and all the freedoms in our Union. Ladies and Gentlemen, The Commission's activities cover many other areas, as you well know. I cannot address them all here but they are mentioned in the letter I sent to the President of Parliament and which you have all received. However, before concluding, let me talk about the external responsibility of the European Union. I want an open Europe, a Europe engaged in the world. L' European action in the world is not only the best guarantee for our citizens, for the defense of our interests and our values, but it is also an essential action in the world. Today, it's fashionable to talk about the G2. I believe the world does not want a G2. The two themselves would have no interest in a G2. We know, in the Cold War, the tension that bipolarity created. I believe that Europe is more than ever essential if we want a fair world and an open world. I believe that the changing world we are witnessing needs a Europe that assumes its responsibilities. An influential Europe, a Europe of 27 and soon 28, with the accession of Croatia. A Europe that continues to lead the way, whether on trade or climate change, while major events await us, from Durban to Rio +20, and Europe must maintain its leadership position on these issues. Let us also turn our gaze and our attention to our neighbors to the south. The Arab Spring is a profound transformation which will have very important consequences not only for these peoples but also for us, for our Europe. This is why Europe should be proud. We were the first to stand alongside Tunisians, Egyptians, Libyans who wanted democracy and freedom. This is why Europe supports these legitimate aspirations, in particular through our Partnership for Democracy and Prosperity. The Print Let us also turn our gaze and our attention to our neighbors to the south. The Arab Spring is a profound transformation which will have very important consequences not only for these peoples but also for us, for our Europe. This is why Europe should be proud. We were the first to stand alongside Tunisians, Egyptians, Libyans who wanted democracy and freedom. This is why Europe supports these legitimate aspirations, in particular through our Partnership for Democracy and Prosperity. The Print Let us also turn our gaze and our attention to our neighbors to the south. The Arab Spring is a profound transformation which will have very important consequences not only for these peoples but also for us, for our Europe. This is why Europe should be proud. We were the first to stand alongside Tunisians, Egyptians, Libyans who wanted democracy and freedom. This is why Europe supports these legitimate aspirations, in particular through our Partnership for Democracy and Prosperity. The Print Europe should be proud. We were the first to stand alongside Tunisians, Egyptians, Libyans who wanted democracy and freedom. This is why Europe supports these legitimate aspirations, in particular through our Partnership for Democracy and Prosperity. The Print Europe should be proud. We were the first to stand alongside Tunisians, Egyptians, Libyans who wanted democracy and freedom. This is why Europe supports these legitimate aspirations, in particular through our Partnership for Democracy and Prosperity. The Printmps Arab, I hope it is also the door open to the hope of peace for the whole region, to the idea of a Palestinian State which lives in peace with the State of Israel , as Europe wishes. But let us also turn our gaze and our attention to our eastern neighbours. On Friday, I will take part in the Eastern Partnership Summit in Warsaw. I am going there with an ambition for a closer political relationship and economic integration between us and our partners in the region. The European Union has extraordinary transformative power. It is an inspiration for many people in the world and if these countries make deep reforms, we can help them and we can involve them more closely from a political point of view, and also integrate us more from an economic point of view. Finally, let's not neglect the poorest of all and live up to our commitments to achieve the Millennium Development Goals. Let us also be realistic and recognize that for Europe to exercise its full influence, if Europe really wants to be a power, we must strengthen the Common Foreign and Security Policy. It has to be believable. It must be based on a dimension of common security and defense if we really want to count in the world. Gone are the days when some were able to oppose the idea of European defense for fear that it might harm the Atlantic Alliance. You have already noticed: today, it is the Americans themselves who are asking us to do more as Europeans. The world has changed, the world is fundamentally changing. Do we really want to count in the world? This is why, at a time when defense budgets are under pressure, we must do more together with the means at our disposal. The Commission takes its share of the responsibility in this by continuing its efforts in favor of a single defense market and by taking advantage of the powers conferred on it by the Treaty to develop a European defense industrial base. Ladies and Gentlemen, Let's not be naïve, the world is changing, and if Europe wants to count in the world and defend the interests of its citizens, we need the political dimension and the defense dimension if we want to count and influence the future of the world. Ladies and Gentlemen, I conclude. At the end of our mandate, in 2014, it will be exactly a century since the Great War broke out on this continent, a dark period which was followed by the Second World War, one of the most dramatic pages in the history of Europe and the world. Today, I think we can say that such horrors are unimaginable in Europe. They are so to a large extent because we have the European Union, because we have, thanks to the vision of Europe, through economic and political integration, built the guarantee of peace on our continent. VS' is why we cannot allow this great work to be endangered. We have received this from previous generations. It will not be our generation that will question this. And let's be clear, if we start to fragment Europe, if we start going backwards in the great conquests of Europe, there would undoubtedly be a risk of fragmentation for our objective. As I said, the bottom line of the crisis we have now is a political problem. It is a test of our will to live together. This is why we must deepen the European Union, this is why we have built common institutions. This is why the European interest must be guaranteed. And the reality today is that intergovernmental cooperation is not is not enough to get Europe out of this crisis, to give Europe a future. On the contrary, a certain intergovernmentalism risks leading to renationalization and fragmentation. A certain intergovernmentalism could be the death of the united Europe as we want it. Let's not forget that the decisions we make now or don't make will shape our future. One thing I would like to communicate to you is that I feel hurt when I see some, in other parts of the world, with a certain paternalism, telling us, to us Europeans, what we must do. I frankly believe that we have problems, very serious problems, but I believe that we do not have to apologize for our democracies. We N' have no excuses for our social market economy. So I believe that we must ask our institutions, but also our Member States, also in Paris, in Berlin, in Athens, in Lisbon, in Dublin, a burst of pride in being Europeans, a burst of dignity, and say to our partners "Thank you for your advice, but together we are capable of overcoming this crisis". I have this pride to be European. And the pride of being European is not only our great culture, our great civilization, everything that we have created in the world. It's not just pride in the past, it's pride in our future. It is this trust that we must recreate between us. I believe it is possible. Some say: it is very difficult, it is not possible. There I would like to recall what a great man, a great African, Nelson Mandela said: 'It always seems impossible, until it is done. Let's do it.'. We can do it with confidence, we can do it for the renewal of our Europe. Thank you for your attention. Mr. Chairman, Ladies and Gentlemen, 1. Analysis of the situation It is an honor for me to deliver this third State of the Union address to you today. While the European Union is still in crisis. A financial and economic crisis. A social crisis. But also a political crisis, a crisis of confidence. The roots of the crisis are to be found in: irresponsible practices within the financial sector; unsustainable public debt; and also a lack of competitiveness in some Member States. Moreover, the euro is grappling with its own structural problems. Its architecture proved to be faulty. Imbalances have accumulated. These failures are being corrected. But it is at the price of painful and painful efforts. Citizens are unhappy. They are worried. They feel that their way of life is threatened. The sense of justice and fairness between Member States is undermined. However, in the absence of equity between the Member States, how can we hope that there is equity between European citizens? Over the past four years, we have had to make many bold decisions to counter this systemic crisis. But despite our best efforts, the measures taken have not yet convinced citizens, markets or our international partners. Why? Because we have constantly allowed doubt to spread. Doubts about the real will of some countries to implement reforms and recover their competitiveness. Doubts about the real will of other countries to show the necessary solidarity to guarantee the irreversibility of the euro and the European project. Too often, we witness an infernal spiral: essential decisions for our future are first taken at European summits, yet mortgaged the next day by some of those who took them, on the grounds that they go too far, or not enough. This creates a credibility problem, a trust problem. It is unacceptable to present these European meetings as if they were boxing tournaments at the end of which one boasts of having knocked out an opponent. We cannot both belong to the same Union and act as if we were not. We can't jeopardize nine good decisions with a single action or statement casting doubt on the overall results achieved. This, ladies and gentlemen, reveals the essence of the crisis of political confidence from which Europe is suffering. How can European political actors hope to convince that they are determined to resolve this crisis together if they do not respect the rules that they themselves have established and their own decisions? Mister President, Ladies and gentlemen, 2. The challenge – a new philosophy for Europe A crisis of confidence is a political crisis. However, and this is the positive element, in a democracy, there is no political problem that does not have a political solution. This is why today I want to address, here and with you, the fundamental political questions – where are we and what direction should we take? I want to focus on the political course and the vision that will inspire our major decisions. Of course, I will not list all these decisions. The letter that I addressed to the President of the European Parliament, which contains the immediate priorities of the Commission, is sent to you at this moment. We will discuss it with you before adoption of the Commission's work program later this autumn. This is what I have to say to you today: Europe must take a new course. To do this, it must free itself from old ideas. Europe needs a new philosophy. When we talk about the crisis, and we all talk about it, have we really drawn the necessary conclusions for our action? When we talk about globalisation, and we all talk about it a lot, have we really measured its impact on the role that each of our Member States must play? Adopting a new philosophy for Europe means first of all taking full measure of the challenges facing us and which are fundamentally changing our world. It's' first stop wanting to respond to tomorrow's problems with the solutions of the past. Since the onset of the crisis, we have consistently seen that interconnected global markets are faster and therefore more powerful than fragmented national political systems. This reality undermines citizens' trust in political action and fuels populism and extremism in Europe and elsewhere. The reality today is that in an interconnected world, Member States are no longer able to control the course of events alone. However, they have not provided their Union, our Union, with the necessary tools to face this new reality. We are currently experiencing a transition. We are at a turning point, which requires decisions and political will. Yes, globalization requires greater European unity. Greater unity comes through more integration. And more integration calls for more democracy, European democracy. In Europe, this means above all that we have to accept the idea that we are all on the same boat. It means becoming aware of the community of interests that binds us. It means assuming the interdependence of our destinies. It also means demanding from everyone a real sense of common responsibility and solidarity. Because on a ship caught in a storm, the least we can expect from our fellow crew members is unwavering loyalty. It is the only way to adjust our step to the rhythm of change. It's only thus we will achieve the scale and effectiveness required to ensure that the Union ranks as a global player. In a changing world, this is the only way to safeguard our values, because it is also a question of values. In the 20th century, a country of barely 10 or 15 million people could be a world power. In the 21st century, even the largest European countries may seem insignificant compared to global giants such as the United States or China. The story is accelerating. It took Britain 155 years to double its GDP per capita, it took the United States 50, and China only 15. But if we remember where some of our new Member States come from, the economic transformations they are experiencing are no less impressive. Today's Europe has all the necessary assets, much more than previous generations who had to face similar or even greater challenges. But we need to act accordingly and harness all these resources together. The time has come to align our ambitions, our decisions and our actions. The time has come to put an end to lame solutions and half measures. The time has come to learn the lessons that history teaches us and to chart a better future for our Europe. Mr. President, Ladies and gentlemen, 3. Responding to the situation "a decisive pact for Europe" What I call for and what I submit to you today is a decisive pact for Europe . A pact to project our values, our freedom and our prosperity in the globalized world of tomorrow. A pact reconciling the need to preserve our social market economies on the one hand and the need to reform them on the other. A pact that will stabilize EMU, stimulate sustainable growth and restore our competitiveness. A pact which will create a contract of trust between our countries, and between the Member States and the European institutions, between the social partners and between the citizens and the European Union. This decisive pact for Europe has the following consequences: We must leave no doubt whatsoever about the integrity of the Union or the irreversibility of the euro. The most vulnerable countries should leave no doubt as to their will to reform, about their sense of responsibility. But the strongest countries must not leave the slightest doubt about their desire to close ranks, about their sense of solidarity. All of us must leave no doubt as to our determination to implement the necessary reforms, and to REFORM TOGETHER. It is simply illusory to believe that our growth can do without reforms or that we can ensure our prosperity alone. We must realize that we share the same fate and that we must solve this crisis together. This decisive pact requires the completion of a deep and genuine economic union, based on a political union. a) Economic Union: Let me start with the European economy. First, we need growth, sustainable growth. Our European social market economy model depends on growth: it creates jobs and sustains our standard of living. But we can only maintain growth if we improve our competitiveness. At the national level, this requires undertaking structural reforms that have been postponed for decades. Modernize public administration. Reduce unnecessary expenses. Attacking sectional interests and privileges. Reform the labor market to create a balance between security and flexibility. And ensure the sustainability of social systems. At European level, we need to show greater determination to remove obstacles, be they physical, economic or digital. It is important that we complete the single market. It is important that we reduce our energy dependence and exploit the full potential of renewable energies. Encouraging competitiveness in sectors such as energy, transport or telecommunications could revive competition, stimulate innovation and lower prices for consumers and businesses. The Commission will soon present a Single Market Act II. To allow the single market to flourish, the Commission will continue to defend its competition rules and trade rules firmly and uncompromisingly. Quite frankly, if we relied on the Member States to defend them, I can assure you that they would not resist pressure from big business and big outside powers. We must create a European labor market and create the possibility for every citizen to find a job as easily in another country as in their own. It is important to explore green growth and to use our resources much more efficiently. We need to show much greater ambition in the areas of education, research and innovation, or science. Europe is a world leader in sectors as essential as aeronautics, automotive, pharmaceuticals and engineering, where it holds more than a third of the world market share. Industrial productivity has increased by 35% over the past decade, despite the economic downturn. Today, some 74 million jobs depend on the manufacturing industry. Every year, start-ups in the EU create more than 4 million jobs. We need to build on these successes by investing in our new industrial policy and creating an economic environment that encourages entrepreneurship and supports small businesses. This means simplifying the tax environment for businesses and making it more attractive to investors. Better coordination of tax policies would be in the interest of all Member States. We also need to establish a proactive trade policy by opening up new markets. Such is the potential of the European economy: a gold mine which is yet to be fully explored. Full implementation of the growth pact agreed at the June European Council will already bring many benefits. But we could go even further, with a realistic but ambitious EU budget focused on investment, growth and reform. Let us be clear: the European budget is the key instrument for investing in Europe and for growth in Europe. The Commission and the Parliament, together with all the pro-European forces, because most Member States support our proposal, must now jointly defend the multiannual financial framework most likely to underpin our action until 2020. If adopted, it will not overwhelm the Member States, thanks in particular to the new system of own resources that we are proposing, but it will give a strong impetus to their economies and their regions, and will greatly help their researchers, their students, their young job seekers and their SMEs. It is a budget focused on economic, social and territorial growth and cohesion between Member States and within Member States. This is a budget that will help complete the single market, by closing the gaps in our energy, transport and telecommunications infrastructure, thanks to the Connecting Europe Facility. This is a budget that promotes modern, growth-oriented agriculture capable of reconciling food security and sustainable rural development. This is a budget which, through the Horizon 2020 programme, will encourage an innovative Europe, research intensive. Because we need this European dimension for research. Its adoption will be a real test of credibility for many of our Member States. I want to check whether the Member States that keep talking about investment and growth will indeed support a pro-growth budget at European level. The budget is also the instrument par excellence to support investment in our growth agenda, Europe 2020, the need for which is felt today more than ever. Europe 2020 is the way forward to modernize and preserve the social market economy in Europe. Ladies and gentlemen deputies, Our program of structural reforms requires a major adjustment effort. It will only succeed if it is fair and just. Because inequality is not sustainable. In parts of Europe, we are currently seeing a real social emergency. Growing poverty and massive unemployment, especially among young people. This is why we need to strengthen social cohesion, a characteristic that distinguishes European society from other models. Some claim that because of the crisis, the European social model is dead. I reject this idea. It is true that we must reform our economies and modernize our social protection systems. But an effective social protection system that helps people in need is not an obstacle to prosperity. It is in fact an indispensable element. In effect, it is precisely the European countries which have the best social protection systems and within which social consultation is the most developed which are among the most efficient and competitive economies in the world. Justice and equity require giving our youth a chance. Our action in this direction is already very important. And before the end of the year, the Commission will launch a package of targeted measures for young people, which includes the creation of a youth guarantee system and the introduction of a quality policy to facilitate vocational training . Justice and equity also require the implementation of fairer and better tax systems. Stop fraud and Tax evasion could bring European states additional revenue of several billion euros. This is why the Commission will fight to obtain an agreement on the revision of the Directive on the taxation of savings as well as on future mandates for the negotiation with third countries of stricter agreements in this area. . These agreements would constitute a considerable source of legitimate tax revenue. The Commission will also continue its efforts to push through a fair and ambitious financial transaction tax that will ensure that taxpayers benefit from the financial sector, and that it is not only the financial sector that benefits taxpayers. Since it is now clear that this agreement can only be obtained through enhanced cooperation, the Commission will do its utmost to move this file forward quickly and efficiently with the Member States that so wish. Because it is a question of fairness, and fairness is an essential condition for gaining social and political acceptance of the necessary economic reforms. And fairness is above all a question of justice, of social justice. Mr. Chairman, Ladies and Gentlemen, In the face of the crisis, important decisions have been taken. Across the European Union, reform and consolidation measures are being implemented. Common financial support mechanisms are in place and European institutions have consistently demonstrated their support for the euro. The Commission is fully aware that the Member States which implement the most far-reaching reforms suffer from considerable economic difficulties and have to make complex, sometimes extremely painful adjustments. But only these reforms can lead to a better future. They should have been done a long time ago and it is simply impossible to return to the previous situation. The Commission will continue to make every effort to support these Member States and to help them stimulate growth and employment, in particular by reprogramming the Structural Funds. Let me briefly mention the situation in Greece. I really think that we have the opportunity, this fall, to reach a turning point. If Greece definitively removes all doubts about its willingness to undertake the required reforms, but also if all the other countries leave no doubt about their determination to keep Greece in the euro zone, we can achieve this. I am convinced that if Greece respects its commitments, it deserves to stay with us and keep its place in the euro zone. Preserving the stability of the euro area is our most pressing challenge. This is the joint responsibility of the Member States and the Community institutions. The ECB cannot finance the States and it will not do so. But if the monetary policy channels are not functioning properly, the Commission believes that the ECB's mandate requires the ECB to take the necessary measures, particularly on the secondary sovereign debt markets. The ECB indeed has not only the right, but the duty to restore the integrity of monetary policy. It is of course up to it, since it is an independent institution, to determine the actions to be taken and to define the conditions. However, all actors, and I mean all actors, must respect its independence. Ladies and Gentlemen, I mentioned the economic measures that we must implement without delay. They are essential, but not sufficient: we must go further. It is essential to complete the economic and monetary union. We need to set up a banking union and a fiscal union and the institutional and political mechanisms that this entails. The Commission is today presenting legislative proposals for the creation of a single supervisory mechanism at European level. This is the first step in creating a banking union. The crisis showed that while banks had become transnational, regulation and supervision had remained national. And when things went wrong, it was the taxpayers who had to pay. Over the past four years, the European Union has reformed the banking sector, taking the global lead in implementing G20 commitments. But coordination alone is no longer enough: we need common decisions on surveillance, especially within the euro area. The Single Supervisory Mechanism proposed today will create a strengthened architecture, in which the European Central Bank will play a key role, and the required interaction with the European Banking Authority, which will restore confidence in the supervision of banks in the eurozone. This will involve ensuring the supervision of all the banks in the euro zone. Since systemic risks can be everywhere, monitoring should cover all banks and not just those said to be “systemically important”. It will of course be necessary to fully involve the national supervisory authorities. This package of measures consists of two coupled legislative texts, one concerning the ECB and the other the EBA. It goes without saying that your assembly will have an essential role to play in adoption of this new mechanism and then in the democratic control to which it will be subject. This is a crucial first step on the way to the banking union that I proposed to this House in June. The creation of a European supervisory authority is now the number one priority, because it is essential for improving the management of banking crises, from the resolution of bank failures to the guarantee of deposits. At the same time, the Commission will continue to work on the reform of the banking sector, in order to ensure that it plays its role in the responsible financing of the real economy. This means improving the long-term financing of SMEs and other businesses. This means adopting rules on benchmark indices, so that we no longer see manipulation of bank interest rates affecting both companies and individuals who have taken out a mortgage loan. This means legislating so that banks provide a level playing field for consumers and reviewing the structure of banking activities to eliminate inherent risks. In this regard, the role of your assembly is essential. The Commission will endeavor to work in close partnership with you. But there is a second part of a deeper economic union, which is to embark on the road to fiscal union. Its justification is self-evident: the economic decisions of one Member State having an impact on the others, we need to strengthen our economic policy coordination. We absolutely must regulate more strictly and more constraining the national decision-making process relating to the key elements of economic policy, because this is the only way to prevent imbalances. While we have already done a lot in this area, for example with the package of six legislative measures (the 'sixpack') and the country-specific recommendations, further measures are essential to match targeted incentives with specific conditions and to enshrine the genuinely lasting economic and monetary union. To achieve lasting results, we need to have real community economic governance as well as a credible community budgetary capacity. We N' we do not need separate institutions or new institutions to achieve this. On the contrary, for things to move quickly and efficiently, the best approach is to use the existing institutions: the European Commission as an independent European authority, under the control of the European Parliament as parliamentary representation at European level . It is within such a framework that, along the way, the stages of a true pooling of amortization and debt issuance can be taken. Thus, it is by combining economic reforms and genuine economic and monetary union that we can move forward. The Commission will publish before the winter a plan for strengthening the economic and monetary union. This project will be presented to your assembly, because these questions must be debated with and by the elected representatives of the people. At the same time, it will fuel the debate during the European Council in December, which will prepare the report that the President of the European Council, myself and the Presidents of the European Central Bank and of the Eurogroup have been invited to draw up. Our project will define the tools and instruments required, and outline the legislative options that can give effect to them, from policy coordination to fiscal capacity and debt amortization. And, if necessary – in the case of joint and severally guaranteed public debt – it would present the changes to be made to the treaty, because some of these changes will require modifying the treaty. This project will thus encompass what we must accomplish not only in the weeks and months to come, but also in the years to come. Mr. President, Ladies and Gentlemen, b) Political Union: Ultimately, the credibility and lasting character of Economic and Monetary Union depend on the institutions and the political construction that underpin it. This is why Economic and Monetary Union raises the question of a political union and of the European democracy on which it must be founded. If we want to make economic and monetary union a success, then we need to combine ambition with rigorous planning. We must take concrete measures without delay, with political union as the horizon. I would like to see the development of a European public space where European issues can be examined and debated from a European point of view. Indeed, trying to solve European problems by providing only national solutions makes no sense, and we cannot continue like this. This debate must take place in our societies and among our citizens. But today, I would like to make a special appeal to European intellectuals. To men and women of culture, to invite them to take part in this debate on the future of Europe. And I am addressing you, your assembly which embodies European democracy. We must strengthen the role of the European Parliament at European level. And we need to promote genuine complementarity and cooperation between the European Parliament and national parliaments. Which will also be impossible without a strengthening of European political parties. Indeed, there is very often a real divide between the political parties in the capitals and the European political parties here in Strasbourg. This explains why, it must be admitted, political debate all too often seems to be limited to national parties. Even during the European elections, the names of the European political parties do not appear on the ballot box, there is a national debate between national political parties. This is why we must revalorize the European political parties. I am proud to announce that the Commission today adopted a proposal to this effect. The pan-European political debate could thus be strengthened if the European political parties presented their candidate for the post of President of the Commission already in the elections to the European Parliament in 2014. This can be done without modifying the Treaty. This would be an important measure to give full weight to the possibility of a European choice offered by these elections. I therefore invite all political parties to make a commitment in this direction and thus to strengthen the European dimension of these European elections. Mr. President, Ladies and Gentlemen, A genuine European Political Union demands that we concentrate European action on the truly decisive issues which must be dealt with at European level. Let's be frank: not all points can be prioritized simultaneously. A certain amount of self-criticism is probably welcome here. Good integration consists in re-examining without prejudice the level at which the action must take place in order to be most effective. Subsidiarity is an essential democratic principle and must be put into practice. A political union also requires that we strengthen the foundations on which our Union is based: respect for our fundamental values, the rule of law and democracy. However, in recent months, the rule of law and democracy have been undermined in several of our European states. The European Parliament and the Commission were the first to sound the alarm and play a decisive role in containing these worrying developments. But these situations have also highlighted the limits of our institutional system. It is important that we equip ourselves with a better designed arsenal which is not limited to the alternative between the power of influence of political persuasion and the 'nuclear option' of Article 7 of the Treaty. Our attachment to respect for the rule of law is also what motivates our project to create a European Public Prosecutor's Office, as provided for in the Treaties. We will soon present a proposal to this end. Mr. President, Ladies and Gentlemen, A political union also means redoubling our efforts to play our role on the world stage. Sharing sovereignty in Europe is actually strengthening sovereignty in a globalized world. In the world of today, size matters. And values make the difference. This is why the message from Europe must be a message of freedom, democracy, the rule of law and solidarity, our European values. More than ever, our citizens and the new world order need an active and influential Europe. It matters that we succeed, not just for ourselves, but for the rest of the world. Europe must fight to defend its values and its conviction that human rights are not a luxury reserved for the developed world but that these values truly have a universal vocation. The dramatic situation in Syria reminds us that we cannot confine ourselves to a passive role of observers. A new, democratic Syria must see the light of day. And our common responsibility is engaged: we have a role to play in this process. And we must work with the actors of the world order who also need to cooperate in this objective. The world needs a European Union that remains at the forefront of development and humanitarian aid, that defends open economies and fights protectionism, that is at the forefront of the fight against climate change. The world needs a Europe that is able to deploy military missions in order to stabilize crisis areas: for this we must undertake an exhaustive survey of European capabilities and begin to establish defense plans that are truly collective. Yes, we must strengthen our common foreign and security policy and our common approach to defence, because together, we have the power and the dimension necessary to influence the world and try to make it fairer and more respectful of legal rules and human rights Mr President, ladies and gentlemen, 4. A new treaty, the dimension 17/27 and the broadening of public debate a) A federation of nation states – A new treaty To achieve a genuine and deep economic and monetary union, a political union with a coherent foreign and defense policy, it is is essential for the European Union as we know it to evolve. Let us not be afraid of words: we will have to evolve towards a federation of nation states. This is what we need, this is our political horizon. VS' It is this ambition that must guide our work in the years to come. Today, therefore, I call for a federation of nation states. Not a superstate, but a democratic federation of nation states capable of solving our common problems by sharing sovereignty in a way that allows each country and each citizen to be better equipped to control their own destiny. A Union that stands with the Member States, not a Union that stands against them. In the era of globalization, the pooling of sovereignties does not amount to a loss but to a gain of power. I purposely spoke of a federation of nation states because in these troubled, agonizing times, we cannot leave the defense of the nation to nationalists and populists alone. I believe in a Europe whose citizens are proud of their nation but also proud to be European and proud of our European values. And to create this federation of nation states, we cannot do without a new treaty. I don't say this lightly. We all know how difficult it has become to change treaties. Preparation will be crucial. The debates on the amendments to the Treaties must not cause us to lose sight of what it is possible and essential to do today, nor cause us to fall behind schedule. It is already possible to embark on a real and deep economic and monetary union within the framework of the current treaties, but it can only be finalized by modifying the treaties. So, let's start right now, but let's set the future as a horizon in the decisions we take today. Nor should we start by changing the Treaties. We must first define the policies we need and the instruments needed to implement them. Only then will we be able to say which tools we lack and which solutions should be adopted. It will then be a matter of leading a broad debate across the whole of Europe, which must take place before the convening of a convention and an intergovernmental conference: a debate with an authentically European dimension. The era of a European construction that was done with the tacit agreement of the citizens is over. Europe can no longer afford to be technocratic, bureaucratic or even diplomatic. L' Europe must be ever more democratic. The role of the European Parliament is essential. This is why the European elections of 2014 may turn out to be decisive. Between now and the next European elections in 2014, the Commission will present its outline for the outlines of the future European Union. And we will present concrete ideas for modifying the treaties, within a time frame that will allow for a debate. We will set out the objectives to be achieved, the way in which the institutions can make the European Union more open and more democratic, the prerogatives and instruments to make it more effective, and the model to follow to make it the Union of the peoples of Europe. 'Europe. I'm sure we need a real debate and what better forum to debate our future and our objectives than these elections at European level? b) The 17/27 dimension Mr. President, Ladies and Gentlemen, This is not just a debate on the euro zone and its current composition. If greater integration is essential for the euro area and its members, the single currency project must nevertheless remain open to all Member States. I say this very clearly: we do not need new walls in Europe that divide us! Because the European Union will be stronger as a whole if it preserves the integrity of its single market, its members and its institutions. No one will be forced to board and no one will be forced to remain at the quay. It is not the slowest or the most reluctant who will set the tempo. This is why our proposals will be based on the existing Union, on its institutions and on the Community method. Let me be clear: there is one European Union, one Commission and one European Parliament. If we want more democracy, more transparency and more accountability, we cannot multiply institutions ad infinitum at the risk of making the European Union more complex, less coherent and less legible than it is, and hamper its ability to act. c) The broadening of public debate This, ladies and gentlemen, is the extent of the decisions that we are going to have to take. VS' this is why I believe that we need to have a frank discussion with European citizens about our future. On the possible consequences of fragmentation, because our actions can have unintended consequences and, sometimes, unwanted fragmentation can occur. And on what we can achieve together provided that decision-makers do not give in to national localism. We must use the 2014 elections to mobilize all pro-European forces and we cannot let populists and nationalists dictate their pessimistic agenda. I call on all those who identify with Europe to stand up and take the initiative in this debate. For if an even greater danger awaits us than the skepticism of anti-Europeans, it is indifference or pessimism of pro-Europeans. Mr. President, Ladies and Gentlemen, 5. Conclusion: is it realistic? In short, we need a decisive pact to complete Economic and Monetary Union, based on a political commitment to a stronger European Union. I suggest that you act in the following, very clear order: First, we must do everything in our power to stabilize the euro area and accelerate growth throughout the European Union. The Commission will present all the proposals necessary to create a banking union, in accordance with the current provisions of the Treaties. And we have already started to do so today with the creation of the Single Supervisory Authority. Second, we will present, again this autumn, our blueprint for a deep and genuine economic and monetary union, including its political instruments. Here again, we will present all these proposals in accordance with the current provisions of the Treaties. And thirdly, where it will not be possible to make progress within the framework of the current Treaties, we will make concrete proposals to make the necessary changes to the Treaties before the next European elections in 2014, in particular elements intended to strengthen democracy and responsibility. This is our project: a project in stages but with a real ambition for the future and a federation as a horizon for Europe. Many people will consider this program too ambitious, unrealistic. But I ask you the question: is it realistic to continue on the current path? Is it realistic to see what we are witnessing today in many European countries? Is it realistic to see taxpayers paying for the banks, then being forced to give their house to these same banks because they can no longer pay their credit? Is it realistic to see that more than 50% of young people are unemployed in some of our Member States? Is it realistic to continue to want to put out fires and simply accumulate mistakes and unconvincing solutions? Is it realistic to think that we can win the trust of the markets when we have so little trust in each other? For me, it is this reality which is not realistic and which cannot last any longer. The realistic path is the one that will make us stronger and more united. Realism consists in raising our ambition to the level of our challenges. We can make it happen! Let's send our youth a message of hope. And if bias there is, let it be a bias of hope. Let us be proud to be Europeans. Proud of our cultural richness and diversity. Despite our current problems, our societies are among the most humane and free in the world. We have nothing to be ashamed of for our democracy, our social market economy and our values. By offering a high level of social cohesion, by respecting human rights, human dignity and equality between men and women, and by protecting the environment, European societies, despite all their problems, are among the most honorable in the history of mankind. I think pride is in order. In our countries, young girls do not go to prison because they criticize their leaders in songs. In our countries, citizens are free and proud of this freedom: they know what this freedom means. In many of our countries, especially the states that joined the Union most recently, the experience of dictatorship and totalitarianism is still vividly remembered. Previous generations have taken on greater challenges. Today, it is up to us to show that it is up to the task. The time has come for all pro-Europeans to forget the good old recipes of the past and face the future. The European Union was built to preserve peace. Today it goes through the adaptation of our Union to the challenges of globalisation. This is why we need a new philosophy for Europe and a decisive pact for Europe. This is why we must let ourselves be guided by the values which are at the heart of the European Union. Europe, I am convinced, has a soul and this soul can give us the strength and the determination to do our duty. You can count on the European Commission. I am counting on you, on the European Parliament. Together, as Community institutions, we will build a better, stronger and more united Europe, a Union of citizens for the future of Europe, but also for the future of the world. Thank you for listening to me. Mr President, Mr Representative of the Presidency of the Council, Ladies and Gentlemen, Ladies and Gentlemen, In eight months, what we have achieved together over the past five years will be up for the judgment of voters across Europe. During these five years, Europe has been more present than ever before in the lives of our fellow citizens. Everywhere on our continent – with family, friends, colleagues, in public debates – she has been in the discussions. Today, I want to look back on the path we have traveled together. And on the one we still have to go. I also want to set out the big ideas that I believe should fuel a truly European political debate in preparation for next year's elections. Ladies and Gentlemen, As I speak to you, it has been precisely five years since the US administration placed the mortgage refinancing organizations Fannie Mae and Freddie Mac under public supervision and bailed out AIB, while Lehman Brothers sought protection under US bankruptcy law. These events are at the origin of a global financial crisis which degenerated into an unprecedented economic crisis, then into a social crisis with dramatic consequences for a large number of our fellow citizens. The debt problem, which remains a major source of concern for our governments, has been aggravated. Unemployment, especially youth unemployment, has risen alarmingly. And household and business activity remains hampered. But Europe reacted forcefully. During these five years, we fought with determination. We faced the crisis together. We understood that we had to come together. And that's what we do. Let's look back and see what we have achieved to keep Europe united through the crisis: I think it's safe to say, we never would have thought all this possible five years ago. We have undertaken fundamental reform of the financial sector to protect our savers. We have given our governments better tools to work together, clean up public finances and modernize economies. We have mobilized more than 700 billion euros to lift the countries hardest hit by the crisis from the abyss, which represents the largest stabilization effort ever agreed between different countries. I have vivid memories of meeting last year with the chief economists of many of our largest banks. Most expected Greece to exit the euro zone, and all feared its disintegration. We are now in a position to frankly dispel these fears: no country has left, or been forced to leave, the euro zone. This year, the European Union has grown further, from 27 to 28 member countries. And next year, the euro zone will have an eighteenth new member. The important thing now is to decide what we are going to do with these advances: are we going to claim them proudly or, on the contrary, decry them? Are we going to draw from it the necessary confidence to continue what we have started or, on the contrary, minimize the fruit of our efforts? Ladies and gentlemen, I have just returned from the G20 summit in Saint Petersburg and can assure you: this year, unlike previous years, Europeans have not received any lessons from their global partners on how to tackle the crisis, but, on the contrary, praise and encouragement. It's not that the crisis is behind us, because it isn't. The Union's resilience will be further tested. But our action inspires confidence in our ability to overcome the crisis, provided we do not rest on our laurels. It is together that we will meet the challenges facing us. Because it is together that we must meet them. While our planet is experiencing profound geoeconomic and geopolitical changes, I am convinced that only together, as the European Union, can we offer our citizens what they yearn for, namely the protection and promotion of our values, our interests and our prosperity in the age of globalization. It is time to go beyond purely national issues and special interests and really move Europe forward. To give a truly European dimension to the debate with the national electorates. It is time for all those who care about Europe, wherever they come from, whatever their political or ideological convictions, to speak loud and clear in favor of Europe. If we ourselves don't do it, we can't expect anyone else to. Ladies and Gentlemen, We have come a long way since the beginning of the crisis. In my State of the Union speech last year, I pointed out that, despite our best efforts, the measures taken had not yet convinced citizens, markets or our international partners. A year later, the facts speak for themselves: our efforts are indeed beginning to convince. In general, interest rate differentials are narrowing, and the most vulnerable countries are paying less to borrow. Industrial production is recovering, markets are regaining confidence, stock markets are doing well, the economic outlook is steadily improving, and consumer optimism is up sharply. We also see that the countries most vulnerable to the crisis, who are now making the greatest efforts to reform their economy, are beginning to reap positive results. In Spain, exports of products and services now represent 33% of GDP, a record since the introduction of the euro, which testifies to the major reforms undertaken and increased competitiveness. Ireland has been able to raise funds on the capital markets since the summer of 2012, its economy should grow for the third consecutive year in 2013, and its manufacturing industry is rehiring. According to the latest forecasts, Portugal's current account balance, which was structurally negative, should broadly reach equilibrium, while Portuguese growth is picking up again, after many quarters in the red. In just three years, Greece has really cleaned up its public finances in a remarkable way. The country is now regaining its competitiveness and, for the first time in decades, is approaching a primary surplus. And Cyprus, which started its program a little later, is also implementing it according to the agreed terms, which is the sine qua non of a return to growth For Europe, recovery is in sight. Naturally, we must remain vigilant. As the popular saying goes, one swallow does not make spring. Let's be realistic in our analysis. Let's not overestimate, but let's not underestimate what has been done either. Even a good quarter therefore does not mean that the economic turbulence is behind us. But it proves that we are on the right track. Based on the numbers we have and the developments we are seeing today, we have good reason to be confident. This should encourage us not to relax our efforts. We owe it to all those for whom the upturn is not yet in sight, to all those to whom the observed improvements are not yet beneficial. We owe it to our 26 million unemployed. Especially young people, who turn to us asking us to give them hope. Because hope and trust are also part of the economic equation. Ladies and Gentlemen, If we are here today, it is because we acted with the necessary resolution to adapt our political vision and its concrete implementation to the lessons we learned from the crisis. And when I say “we”, I really mean “we”: it really was a joint effort. You, in this Assembly, have played a decisive role at every stage, accomplishing some of the most impressive legislative work ever seen. I personally think that European citizens do not know this enough, and that your merits must be recognized more. Therefore, I appeal to you today: let us continue to work together to reform our economies, create growth and jobs and adapt our institutional architecture. Because only in this way will we also overcome this phase of the crisis. However, we still have great things to do together at European level, under the current term of Parliament and the current mandate of the Commission. What we can and must do above all, let's talk concretely, is achieve the banking union. This is the first and most urgent phase, which aims to deepen our Economic and Monetary Union, as set out in the Commission's program presented last autumn. The legislative process for the Single Supervisory Mechanism is almost complete. The next step is the independent assessment of banks' assets by the ECB, before it exercises its supervisory role. We must now urgently focus our attention on the Single Resolution Mechanism. The Commission's proposal has been under consideration since July and together we must ensure that it is still adopted during this legislature. VS' is the way to ensure that taxpayers will no longer be on the front line to pay the price of bank failure. This is the way to progress towards a dissociation between banking risk and sovereign risk. This is the way to go to remedy one of the most alarming and unacceptable results of the crisis: the increased fragmentation of the European financial sector and credit markets, even a renationalisation which does not speak its name. It is also the solution to help return to normal practices in terms of lending to the economy, and in particular to SMEs, insofar as, despite the accommodating monetary policy, the influx of credit into the economy does not is not yet sufficient within the euro area. This issue needs to be tackled with determination. Ultimately, it is about one thing, growth, which is needed to solve the most pressing problem today, which is unemployment. The current level of unemployment is economically unsustainable, politically unsustainable and socially unacceptable. That is why all of us here in the Commission – and I am delighted to be surrounded today by all of my Commissioners – want to work actively with you and with the Member States to achieve as much of our agenda as possible. for growth; we are mobilizing all the instruments, but of course, let's be honest, not all of them are at European level, some are at national level. I would like to give priority to the implementation of decisions relating to youth employment and the financing of real economy. We must avoid the scenario of a recovery without job creation. Europe must therefore step up the pace of structural reforms. Our country-specific recommendations indicate what Member States should do in this regard. At EU level, because while some things can be done at national level, others can be done at European level, the focus must be on what matters most for the real economy: before fully exploit the potential of the single market. Our single market for goods works well and we see the economic benefits of this system. We need to apply the same formula to other sectors: mobility, communications, energy, finance and e-commerce, not to mention cite just a few. We must remove the barriers that impede the activity of dynamic companies and individuals. We must complete the interconnection in Europe. I am announcing that today we are going to formally adopt a proposal which gives impetus to the establishment of a single telecommunications market. Citizens know that Europe has significantly reduced roaming costs. Our proposal will strengthen guarantees, further reduce prices for consumers and open up new possibilities for businesses. We know that in the future, commerce will increasingly go digital. Is it not paradoxical that we have an internal market for goods, but when it comes to the digital market, we have 28 national markets? How can we seize all the possibilities offered by the digital economy if we do not complete this internal market? The same logic applies to the broader digital strategy, which aims to solve real problems and improve people's daily lives. The strength of Europe's future industrial base will depend on how people and businesses are interconnected. And by correctly combining the digital agenda and the protection of data and privacy, our European model will strengthen citizens' trust. With regard to both internal and external developments, the adoption of the proposed data protection legislation is of key importance for the European Commission. The single market is an essential lever for competitiveness and employment. By adopting all the remaining proposals under the Single Market Act I and II, and implementing the Connecting Europe Facility over the next few months, we will lay the foundations for prosperity for years to come. coming. We are also adapting to a dynamic transformation on a global scale, and we must therefore encourage this innovative dynamism on a European scale. This is why we also need to invest more in innovation, technology and the role of science. I have immense confidence in science, in the capacity of the human spirit and in the creativity of society to solve its problems. The world is changing. And I believe that a large number of solutions will come in the future, in Europe as in the rest of the world, from new scientific research and new technologies. And I want Europe to be at the forefront of these global efforts. This is why we, Parliament and Commission, have made Horizon 2020 a priority in the discussions on the EU budget. That's why we use the EU budget to invest in skills, education and vocational training, thereby boosting and supporting a pool of talent. That's why we advocated for Erasmus Plus. And that is why, in the course of the autumn, we will formulate new proposals for an industrial policy adapted to the 21st century. VS' is the reason why we are mobilizing in favor of SMEs, because we are convinced that a solid industrial fabric is essential for a strong European economy. And while tackling climate change, our “202020” goals have set our economy on a path of green growth and resource efficiency, reducing costs and creating jobs. By the end of the year, we will present concrete proposals for our energy and climate framework for 2030. And we will continue to define the international strategy by specifying by 2015, in collaboration with our partners, the content of a global climate agreement, which will be comprehensive and legally binding. L' Europe cannot make all the efforts to combat climate change alone. Really, we haveWe need others too. At the same time, we will continue our work on the impact of energy prices on competitiveness and social cohesion. All these growth factors are part of our “Europe 2020” strategy. Its full and speedy implementation is more urgent than ever. In some cases, we even have to go beyond the 2020 agenda. This means that we also have to pursue our active and firm trade policy. It's about getting closer to growing markets in third countries and securing our place in the global supply chain. Contrary to the perception of the majority of our fellow citizens, who think that we are losers in globalization, we have a large trade surplus, of more than 300 billion euros per year, and which continues to grow, for goods and services and agricultural products. We must take advantage of this advantage, which will also require our full attention in the months to come, in particular within the framework of the Transatlantic Trade and Investment Partnership with the United States and the negotiations with Canada and Japan. Last but not least, we must redouble our efforts to implement the multiannual financial framework, the European budget. The EU budget is the most concrete lever we have to stimulate investment. In some of our regions, the European Union budget is the only means of obtaining public investments because the sources of financing do not exist at national level. Both the European Parliament and the Commission wanted more resources. We fought together for this. But even as it stands, the EU budget for a single year is more money (at today's prices) than the entire Marshall Plan at the time! Let us now ensure that the programs can start on 1 January 2014, that the results are visible on the ground and that we exploit the possibilities offered by innovative financing, whether it is the instruments that we have already put in place, from the EIB or bond loans for the financing of projects. We must deliver on the commitment we made in July. As far as the Commission is concerned, we will get there. For example, we will present the second amending budget for 2013 again this month. There's no time to lose; I therefore warn you against any procrastination. In particular, I urge Member States not to delay the process. I cannot stress this point enough: speeches and promises will not be enough to convince citizens; only a series of concrete common achievements will achieve this. We need to show the many areas where Europe has solved citizens' problems. Europe is not the cause of the problems, Europe is part of the solution. I go into more detail about what remains to be done in today's letter to the President of the European Parliament, which you have also received. I do I won't go into details about the program for next year here. My point today is clear: there is still a lot to accomplish together before the elections. Now is not the time to throw in the towel, but to roll up our sleeves! Ladies and Gentlemen, None of these achievements is easy. We are living in difficult times, and the Union is facing a real stress test. The road to permanent and profound reform is as trying as it is inevitable. Make no mistake about it: we will not be able to return to the situation we knew. Some think that once the crisis is over, everything will go back to the good old days. They are wrong. This crisis is different. This is not a cyclical crisis, but a structural crisis. We will not return to normal as we knew it before. We need to invent a new normal. We find ourselves at a turning point in history. We need to understand it, not just say it. But we must draw all the consequences from this, including for our state of mind and our reaction to problems. We see from the first results that this is possible. And we all know from experience that this is necessary. As things stand, with the recovery fragile, the biggest downside risk I see is political in nature: a lack of stability and a lack of resolve. In recent years, we have seen that anything that casts doubt on governments' commitment to reform is instantly sanctioned. On the other hand, strong and convincing decisions have an important and immediate effect. At this stage of the crisis, the role of governments is to provide the security and predictability that markets still lack. You most certainly know Justus Lipsius, who gave his name to the Council building in Brussels. He was a very influential humanist of the 16th century, author of a major work entitled Traite de la constancy. “Consistency,” he wrote, “is the unshakeable strength of an upright mind that does not allow itself to be exalted or depressed by external or fortuitous things.” Only a “firmness established in the mind”, he said, “by judgment and right reason” can help you in these troubling and confusing times. I hope that in the difficult times that we are going through, we will all know, including the representatives of the governments who meet at Juste Lispe, show this determination and this perseverance when it is necessary to implement the decisions which have been taken. Indeed, one of the challenges to be met is to be consistent: it is not only a question of making decisions, it is also necessary to be able to implement them on the ground. Ladies and Gentlemen, It is only natural that in recent years our efforts to overcome the economic crisis have overshadowed everything else. But our idea of Europe must go well beyond the economy. We are much more than a market. The European ideal touches the very foundations of European society. It is about values, and I underline this term: values. This ideal is based on a deep attachment to political, social and economic standards, rooted in our social market economy. In today's world, action at EU level is essential to protect these standards and values and to promote citizens' rights, be they consumer protection or workers' rights, women's rights or respect for minorities, environmental standards or data protection and privacy. Whether it is to defend our interests in international trade, to secure our energy supply or to restore the feeling of fairness among the population by combating tax evasion and tax evasion: it is only 'acting as' Union that we will assume our share of responsibility on the world stage. Whether it is trying to give maximum effect to the humanitarian and development aid we provide to developing countries, managing our common external borders or establishing in Europe a security and defense policy strong: only by deepening our integration can we really achieve these goals. There is no shadow of a doubt. Our internal consistency and our weight on the international scene are inseparable. Our economic attractiveness and the political dynamics that drive us are fundamentally linked. Who could seriously think that, if the euro had collapsed, we or our Member States would have retained any credibility on the international scene? Let us remember how enlargement healed the deep wounds of our history and established democracy where no one would have thought possible. Or how the neighborhood policy has been and remains the best means of ensuring security and prosperity in regions of vital importance for Europe. Where would we be today without all of this? Today, countries like Ukraine are more than ever seeking closer ties with the European Union, attracted by our economic and social model. We cannot turn our backs on them. We cannot accept attempts to limit the sovereign choices of these countries. Everyone's free will and consent must be respected. These are also the principles that are the basis of our Eastern Partnership, which we want to take forward at our summit in Vilnius. Let us remember how much Europe has suffered from its wars over the last century, and how European integration has been the valid answer. Next year it will be one hundred years since the First World War broke out. A war which, from Sarajevo to the plains of the Somme, tore our continent apart. Never take peace for granted! Let us remember that it is thanks to Europe that the enemies of yesterday are sitting at the same table and working together today. It's only because they have been offered a European perspective that even Serbia and Kosovo have now reached an agreement, mediated by the Union. The Nobel Peace Prize we received last year reminded us of this historic achievement: Europe is a peace project. We should be more aware of this ourselves. Sometimes I think we shouldn't be afraid to be proud. Not arrogant. But more proud. We must look to the future, but with the wisdom we have acquired in the past. Let things be clear for all those who rejoice in Europe's difficulties and wish to unravel our integration and return to isolation: our fellow citizens do not want, and do not deserve, a return to the Europe of 'before integration, at the Europe of divisions, to Europe of war, to Europe of trenches. Never in its history has our continent known such a long period of peace as since the creation of the European Community. It is our duty to preserve and consolidate it. Ladies and Gentlemen, It is precisely on the strength of our values that we are trying to find a solution to the unbearable situation in Syria, which, over the past few months, has put the conscience of the world to the test. The European Union has been at the forefront of international humanitarian aid, mobilizing almost €1.5 billion, of which €850 million comes directly from the EU budget. The Commission will do everything in its power to help the Syrian people and Syrian refugees in neighboring countries. We have recently witnessed events that we thought belonged to a time long gone. The use of chemical weapons is a despicable act which calls for the strongest condemnation and a vigorous response. The international community, united within the United Nations, bears the collective responsibility of sanctioning these acts and putting an end to this conflict. The proposal to dismantle Syria's chemical arsenal is a promising development. The Syrian regime must now prove its willingness to implement this dismantling without delay. In Europe, we believe that ultimately only a political solution will offer a good chance of securing the lasting peace that the Syrian people deserve. Ladies and Gentlemen, Some say that a weaker Europe would make their country stronger, that Europe is a burden; that they would be better off without her. To those I say bluntly: we all need a united, strong and open Europe. The ongoing debate across Europe ultimately boils down to the following question: Do we want to make Europe better, or give it up? My answer is clear: let's get involved! If you don't like Europe as it is, improve it! Find ways to make it stronger domestically and internationally, and I will be your best support. Find ways to ensure diversity without creating discrimination, and I will always be on your side. But do not turn away from Europe! I recognize it: like any human enterprise, the European Union is not perfect. For example, the controversies over the distribution of tasks between the national and European levels will never be definitively settled. I attach great importance to subsidiarity. For me, subsidiarity is not a technical concept. It is a fundamental democratic principle. An ever closer union between European citizens requires that decisions be taken as transparently as possible and at the level closest to the people. Not all problems should be solved at European level. Europe must focus on areas where it can provide maximum added value. When this is not the case, it should not intervene. The European Union must be very visible on the major issues, more discreet on the less important issues; vs' is something that we have perhaps sometimes overlooked in the past. The EU must show that it has the capacity to set both positive and negative priorities. Like any government, we must pay particular attention to the quality and quantity of the rules we adopt, because, to quote Montesquieu, “useless laws weaken necessary laws”. But there are, ladies and gentlemen, areas of major importance where Europe must be more integrated and more united. Where only a strong Europe can deliver results. I am convinced that political union must be our course, as I stressed to you in this Chamber a year ago. This is not just the request of a passionate European. VS' is the essential way forward to consolidate the progress made and ensure the future. Because in the end, the solidity of our policies, and in particular of the Economic and Monetary Union, depends on the credibility of the political and institutional structure on which it rests. This is why, in its Detailed Project for a genuine and deep Economic and Monetary Union, the Commission has presented not only the economic and monetary characteristics of this project, but also the imperatives, possibilities and limits of a deepening of our medium and long term institutional framework. The Commission will continue its efforts to implement its detailed plan, step by step, step by step. And I confirm, as I announced last year, that we have the intention to present, before the European elections, new ideas on the future of the Union and on the best way to consolidate the Community method and approach in the long term. Thus, these ideas can be the subject of a real European debate. We will define the principles and orientations necessary for a true political union. Ladies and Gentlemen, We can only meet the current challenges by strengthening the consensus on the fundamental objectives. Politically, we must not allow ourselves to be divided by the differences between the countries of the euro zone and those which are not part of it, between those of the center and those of the periphery, between those of the north and those of the south , or between those of the east and those of the west. L' European Union must remain a project for all its members, a community of equal members. Economically, Europe has always contributed to reducing the gaps between countries, regions and peoples. And this must continue. We cannot do the Member States' work for them. This responsibility remains theirs. But we can and must complement it with European responsibility and solidarity. This is why strengthening the social dimension, with the help of our social partners, will be a priority in the months to come. On October 2, the Commission will present its communication on the social dimension of the Economic and Monetary Union. Solidarity is one of the elements that give Europe its full meaning, and of which there is reason to be proud. Safeguarding its values such as the rule of law, has always been the raison d'être of the European Union, from its beginnings to the final stages of its enlargement. In last year's State of the Union address, at a time when the rule of law was being challenged within our own Member States, I stressed the need to find a middle way between , on the one hand, political persuasion and targeted infringement procedures, and, on the other hand, what I have called the 'nuclear' option provided for in Article 7 of the Treaty, namely the suspension of rights of a Member State. Experience has confirmed the usefulness of the Commission in its role of independent and impartial arbiter. We must consolidate this experience by adopting a more general framework, based on the principle of equality between Member States, and which would only be activated, according to predefined criteria, in situations where a serious and systemic threat hangs over the rule of law. The Commission will present a communication on this subject. I think this is an essential debate for our vision of Europe. National sovereignty and democracy will not be diminished for the cause. But we really need a robust European mechanism that moves the lines when common fundamental principles are at stake. There are non-negotiable values that the Union and its Member States must always defend and will always defend. Ladies and Gentlemen, The polarization that the crisis has brought about is a threat to all of us and to the European project. We, the legitimate political representatives of the European Union, can reverse the trend. You, the directly elected democratic representatives of Europe, will be at the forefront of the political debate. My question is: what image of Europe will be presented to voters? The sincere version, or the caricatural version? Myths or facts? The honest and reasonable version, or the extreme and populist version? The difference is significant. I know that there will be people who will say that it is Europe that is responsible for the crisis and the hardships it has caused. But we can remember that it is not Europe that is at the origin of this crisis: this was caused by the mismanagement of public finances by national governments and by irresponsible behavior in the financial markets. We can explain how Europe worked to resolve the crisis. What we would have lost if we had not managed to maintain the single market, which was threatened, and the common currency, the end of which some predicted. Or if we hadn't coordinated recovery efforts and jobs initiatives. Some will say that Europe is forcing governments to cut spending. However, we can remind voters that public debts had already slipped considerably before the crisis, not because of Europe, but in spite of it. We can add that if we relax our efforts now, it will be the most vulnerable people in our societies, as well as our children, who will end up paying the price. The truth is that both eurozone and non-euro area countries, European countries and the rest of the world, are making efforts to reduce the heavy burden on their public finances. Some will campaign saying that we have given too much money to vulnerable countries. Some will campaign saying that we have given them too little. However, each of us will be able to explain what we have done and why we have done it: there is a direct link between the borrowing of one country and the banks of another, between the investments of one country and the companies of another, between the workers of one country and the companies of another. This interdependence means that only European solutions are effective. My point is as follows: when we are in the same boat, we cannot say: “the boat is sinking on your side”. We were in the same boat when the situation was favorable, and we are still there now that it is difficult. Some might campaign by saying that Europe has assumed too much power. Others will claim that Europe always does too little, too late. It is interesting to note that it is sometimes the same people who say that Europe is not doing enough and who refuse to give it the necessary means. But we can explain that Europe has been entrusted with its tasks and competences by the Member States. The European Union is not a foreign power. It results from democratic decisions taken by the European institutions and the Member States. However, we must recognize that in some areas Europe still does not have the power to do what is asked of it. Many people who like to attribute failures to Europe and successes to national states forget this all too easily. At the end of the day, what we have, like what we don't have, is the product of democratic decision-making. And I think we need to remind citizens of that. Ladies and gentlemen, Mr President, ladies and gentlemen, I dare to believe that the European Parliament will take up this challenge with all the idealism that drives it, and with as much realism and determination as current circumstances require . The arguments are known. The facts are known. The agenda has been set out. In 8 months, voters will decide. Today, it is up to us to plead for Europe. We can do this by using the next eight months to take as many steps as possible. We still have a lot to do. In particular, we must adopt and implement the European budget, the multiannual financial framework, which is crucial for investments in all regions of Europe. This is essential to tackle the first of our priorities: the fight against unemployment, and in particular against youth unemployment. We also need to advance and implement the banking union. This is essential to solve the problem of financing businesses and SMEs. Here are our clear priorities: jobs and growth. Our work is not finished. He is entering a decisive phase. Indeed, ladies and gentlemen, what is at stake in the elections will not only be the European Parliament. Neither the Commission. Nor the Council. Nor this or that personality. It is Europe itself that will be at the heart of this election. It is together that we will be judged. Therefore, let us work together for Europe. With passion and determination. Let us not forget: 100 years ago, Europe allowed itself to be dragged into the abyss of the 1914 war. Next year, in 2014, I hope to see it emerge from the crisis more united, stronger and more open. Thank you for your attention. President of the European Commission Mr President, Ladies and Gentlemen, Members of the European Parliament, today is the first time that, within the framework of my mandate as President of the European Commission, I have had the honor to address this assembly on the state of the European Union. I would therefore like to remind you of the political importance of this very special institutional moment. The State of the Union address is explicitly provided for in the framework agreement on relations between the European Parliament and the European Commission. This agreement provides that "[e]ach year during the first part-session in September, there is a debate on the state of the Union during which the President of the Commission delivers a speech in which he the balance sheet of the current year and outlines the priorities for the following years. To this end, at the same time, the President of the Commission will specify in writing to Parliament the key elements governing the preparation of the Commission's work program for the following year. The State of the Union address therefore requires the President of the Commission to take stock of the current situation of our European Union and define the priorities for work going forward. It also launches the interinstitutional process leading to the Commission's new work program for next year. Together with Frans Timmermans, my first vice-president, I sent a letter this morning to the presidents of the two arms of the European legislative power, to President Martin Schulz and to the Prime Minister of Luxembourg Xavier Bettel, who currently holds the rotating presidency of the Council. This letter sets out in detail the many actions the Commission intends to take, legislatively or otherwise, by the end of 2016. We propose an ambitious, focused and dense legislative program which will require the Commission, Parliament and the Council cooperate closely and effectively. I will not go into the details of our legislative program now. We will have a structured dialogue with Parliament and the Council on this subject in the coming weeks. But I think today is not the time to talk about all that. I am the first President of the Commission whose nomination and election resulted directly from the result of the elections to the European Parliament, in May 2014. Having campaigned as the lead candidate for these elections, I had the possibility of being a more political President. This political role is provided for by the Treaties, by virtue of which the Member States have made the Commission the promoter of the general interest of the Union. But the crisis years undermined this understanding of the Commission's role. This is why I declared before this assembly, last September, that I wanted to chair a Political Commission. A very political Commission. I said that not because I think we can and should politicize everything. I said this because I am convinced that the immense challenges that Europe is currently facing — both internally and externally — leave us with no choice but to face them from a very political perspective, in a very political way and bearing in mind the political consequences of our decisions. Recent events have confirmed the urgent need for such a political approach in the European Union. Now is not the time to use the usual recipes. Now is not the time to tick off lists or check whether this or that sectoral initiative has found its place in the State of the Union address. Now is not the time to count how many times the words “social”, “economic” or “sustainable” appear in this speech. Now is the time for honesty. Now is the time to speak frankly about the major problems of the European Union. Because our European Union is not doing well. There is not enough Europe in this Union. And there is not enough Union in this Union. We have to change that, and now is the time. The refugee crisis: the imperative to act as a Union Whatever the work or legislative programs say, the absolute priority today is and must be to respond to the refugee crisis. Since the beginning of the year, nearly 500,000 people have reached Europe. Most of them are fleeing the war in Syria, the terror instigated by the Islamic State in Libya or the dictatorship in Eritrea. The Member States most affected are Greece, with over 213,000 refugees, Hungary, with over 145,000 and Italy, with over 115,000. These figures are impressive. For some, they are scary. But now is not the time to let fear speak. It's time for bold action, determined and concerted action by the European Union, its institutions and all its Member States. It is first and foremost a question of humanity and human dignity. For Europe, it is also a question of justice in the light of history. We Europeans must remember that Europe is a continent where almost everyone was once a refugee. Our common history is marked by those millions of Europeans who fled religious or political persecution, war, dictatorship or oppression. The Huguenots who fled France in the 17th century. The Jews, Sinti, Roma, and many others who fled Germany in the 1930s and 1940s to escape Nazi horror. Spanish Republicans who fled to find refuge in camps in southern France in the late 1930s, after their defeat in the Civil War. Hungarian revolutionaries who fled to Austria after their uprising against communist rule was crushed by Soviet tanks in 1956. Czech and Slovak citizens who sought asylum in other European countries after the spring crackdown of Prague in 1968. The hundreds, the thousands of people forced to abandon their homes after the wars in the former Yugoslavia. Have we forgotten why there are more people with the McDonald's name living in the United States than there are in Scotland? Why are there more O'Neills and Murphys living in the US than in Ireland? Have we forgotten that 20 million people of Polish origin live outside Poland, because of the political and economic emigration movements caused by the numerous border shifts, forced expulsions and resettlements that have marked the often painful history of Poland? Have we really forgotten that after the ravages of World War II, 60 million people were refugees in Europe? That after this terrible experience in Europe, a global protection system, the 1951 Geneva Convention relating to the Status of Refugees, was created to provide refuge to those in Europe who had to jump over walls to escape wars and totalitarian oppression? We Europeans should know, and never forget, why it is so important to welcome refugees and to respect this fundamental right is the right of asylum. I have said in the past that we are too rarely proud of our European heritage and of our European project. However, despite our fragility, despite what we perceive as our weaknesses, it is Europe which, today, is seen as a land of refuge and asylum. It is Europe which today, in the eyes of the women and men of the Middle East and Africa, represents hope, a haven of stability. We should be proud of it, not afraid of it. Today's Europe, despite all the differences between its member states, is by far the most prosperous and stable continent in the world. We have the means to help those fleeing war, terror and oppression. I know it, many would like to tell me that all this is well, but that Europe cannot accommodate everyone. It is true that Europe cannot accommodate all the misery of the world. But let's be honest, and put things into perspective. It is certain that Europe is currently seeing a large and unprecedented influx of refugees. But they never represent more than 0.11% of the total EU population. In Lebanon, refugees represent 25% of the population. And this, in a country where people are five times less wealthy than in the European Union. We must also speak clear and honest language to our citizens, who are often worried: as long as the war lasts in Syria and terror reigns in Libya, the refugee crisis cannot resolve itself. We can build walls, we can erect fences. But imagine for a moment that it was you who found yourself in this situation, your child in your arms, and your whole daily world collapsing. There is no price you wouldn't pay, no wall, sea or border you wouldn't cross to escape war or the barbarism of the so-called "Islamic State". It is therefore high time to act to manage the refugee crisis. There is no alternative. We have shown ourselves the finger a lot in recent weeks. Member States have accused each other of not doing enough or doing the wrong thing. And more than once, it is Brussels that has been singled out by the national capitals. This mutual blame game could make us angry. But I wonder who would win. Being angry doesn't help anyone. And by trying to blame others, politicians often only show that they are overwhelmed by unforeseen events. We should rather recall what we have already agreed on and which can help us deal with the current situation. It's time to see what's already on the table and move quickly. We are not starting from scratch. Since the early 2000s, the Commission has presented legislative initiative after legislative initiative to build a common European asylum system. And the European Parliament and the Council adopted these proposals, one after the other. The last piece of this legislative edifice came into force in July 2015. We now have common standards across Europe for the reception of asylum seekers with respect for their dignity, and for the processing of their asylum applications and we have common criteria that our independent judicial systems use to determine whether a person is entitled to international protection. But these criteria must be applied and respected in practice. Clearly it's not yet, we see it every day on TV. Before the summer, the Commission had to launch a first series of 32 infringement procedures to remind the Member States of their commitments. And a second series will follow in the coming days. All Member States must apply European legislation. This should go without saying in a Union based on the rule of law. The existence of common standards for asylum is an important but not sufficient condition to respond to the current refugee crisis. The Commission, Parliament and the Council said so in the spring. In May, the Commission presented a comprehensive European agenda on migration. And it would be dishonest to say that nothing has happened since. We have tripled our presence at sea. Over 122,000 lives have been saved since then. Each life lost is one too many, but many more lives were saved than would otherwise have been the case – a 250% increase. 29 EU Member States and countries associated with the Schengen area are participating in joint operations coordinated by Frontex in Italy, Greece and Hungary. 102 guest officers from 20 countries; 31 ships; 3 helicopters; 4 planes; 8 patrol vehicles, 6 vehicles with thermal camera and 4 transport vehicles – this is a first measure of what European solidarity is in action, even if much more needs to be done. We have redoubled our efforts to prevent smugglers from causing harm and to dismantle human trafficking organisations. As it has become more difficult to obtain cheap ships, fewer people are risking their lives on makeshift boats that are unseaworthy at sea. stabilized around 115,000 in August, the same number as last year. We must now similarly stabilize the passage through the Balkans, which has been obviously neglected by all politicians. The European Union is also the leading donor in international efforts to respond to the Syrian refugee crisis. The Commission and Member States have mobilized some €4 billion for humanitarian assistance, development aid, economic and stabilization assistance to Syrians in their country as well as to refugees and the communities that have hosted them in neighboring countries: Lebanon, Jordan, Iraq, Turkey and Egypt. Today, we launched two new projects for schooling and food security for 240,000 Syrian refugees in Turkey. In solidarity with our neighbours, we have collectively committed to enabling more than 22,000 people from non-European countries to settle in the European Union. next year. This contribution obviously remains very modest compared to the titanic efforts made by Turkey, Jordan and Lebanon, which host more than 4 million Syrian refugees. I am glad to see that some Member States have expressed their willingness to step up the European resettlement effort. This will allow us to soon propose a structured system to pool European resettlement efforts more systematically. Where Europe falls short is in our collective solidarity with the refugees who have arrived on our territory. For me, there is no doubt that the Member States where the greatest number of refugees arrive first in the Union at the moment are Italy, Greece and Hungary cannot be left to their fate and manage this challenge alone. This is why the Commission has already proposed, as early as May, a first emergency mechanism for the relocation of 40,000 people seeking international protection who are currently in Italy and Greece. It is for the same reason that we are now proposing a second emergency mechanism for the relocation of 120,000 people from Italy, Greece and Hungary. This presupposes a considerable effort of European solidarity. Before the summer, we did not get the support from the Member States that I had hoped for. But I see that the state of mind is changing. And I think it's high time. I call on Member States to adopt, at the extraordinary meeting of the Council of Interior Ministers on 14 September, the Commission's proposals on the emergency relocation of 160,000 refugees. Now we need immediate action. We cannot leave Italy, Greece and Hungary to fend for themselves. Just as we would not leave any other Member State of the Union on their own. Because if today the refugees come from Syria or Libya, tomorrow they could just as well come from Ukraine. Europe has made the mistake in the past of distinguishing between Jews, Christians, Muslims. There is no religion, no creed, no philosophy when it comes to refugees. Let's not underestimate the urgency of the situation. Do not underestimate our duty to act. Winter is coming. Think of those families who sleep in parks and train stations in Budapest, in tents in Traiskirchen or on the shores of the island of Kos. What will happen to them in the cold winter nights? Of course, relocation alone does not solve the problem. We also need to draw a clearer distinction between people who are clearly in need of international protection, whose asylum application is likely to be successful, and those who leave their country for other reasons and therefore cannot not claim asylum. This is why the Commission is now proposing a common EU list of safe countries of origin. This list will allow Member States to speed up asylum procedures for nationals of countries presumed to be safe. We consider that this presumption of safety must apply in any event to all the countries which the European Council has unanimously decided meet the Copenhagen criteria for accession to the European Union, in particular as regards concerns democracy, the rule of law and respect for fundamental rights. It should also apply to the other potential candidate countries in the Western Balkans, given the progress they have made towards becoming candidate countries. Obviously, I am aware that the list of safe countries is only a simplification of procedure. It cannot affect the fundamental right to asylum of asylum seekers from Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Kosovo, Montenegro, Serbia and Turkey. But it allows national authorities to focus on those refugees most likely to be granted asylum, including those from Syria. This is especially necessary in the current situation. I also believe that, in addition to the immediate measures to be taken to deal with emergency situations, it is time to prepare for a more fundamental change in our management of asylum applications, and in particular in the Dublin system, which requires asylum applications are processed by the first country of entry. We need more Europe in our asylum policy. We need more Union in our refugee policy. A genuine European policy on refugees and asylum presupposes that solidarity is firmly anchored in our political approach and in our rules. This is why today the Commission is proposing a permanent relocation mechanism, which will allow us in future to respond more quickly to crisis situations. A common refugee and asylum policy requires further harmonization of asylum policies after refugee status has been granted. Member States must reconsider their policies for supporting the integration and inclusion of refugees. The Commission is ready to explore how EU funds can support these efforts. And I am very strongly in favor of allowing asylum seekers to work and earn money while their application is being considered. A united refugee and asylum policy also requires a strengthening of joint efforts to protect our external borders. Fortunately, we have abandoned border controls between Member States of the Schengen area to guarantee the free movement of people, this symbol par excellence of European integration. But in return, free movement requires us to cooperate even more closely to manage our external borders. This is what our fellow citizens expect. The Commission reaffirmed it in May and I said it during my election campaign: we must strengthen Frontex significantly to develop it into a fully operational European border and coast guard system. It's totally achievable. But this will have a cost. The Commission considers this to be money well invested. That is why we will propose before the end of the year ambitious measures to set up a European corps of border and coast guards. A truly united European migration policy also means that we must study the opening of legal channels for migration. Let's be clear: this will not solve the current refugee crisis. But with more safe and controlled routes open to Europe, we can better manage migration and make the illegal activity of human traffickers less attractive. Let us not forget that we are an aging continent which is experiencing demographic decline. We are going to need talent. Migration must gradually stop to be a problem to be solved to become a well-managed opportunity. To this end, the Commission will present at the beginning of 2016 a package of well-calibrated measures on legal migration. A lasting solution can only come if we address the root causes, the reasons why we are currently facing this vast refugee crisis. Our European foreign policy must be more assertive. We can no longer afford to be indifferent or disunited in the face of war or instability on our doorstep. In Libya, the Union and its Member States must redouble their efforts to engage with regional partners so that a government of national accord can soon be put in place. With all the instruments available to the Union, we must be ready to help this government ensure, as soon as it takes office, the security of the population and the provision of the necessary services. The Union's humanitarian and development aid will have to be immediate and large-scale. I would also like to point out that we are entering the fifth year of the Syrian crisis, with no end in sight. So far, the international community has failed in its obligations to the Syrian people. Europe too has failed in its obligations towards the Syrian people. I call today for the launch of a European diplomatic offensive in response to the Syrian and Libyan crises. We need a stronger Europe in foreign policy. I therefore welcome the determination of Federica Mogherini, our High Representative, who, thanks to its diplomatic successes in the negotiations on the Iranian nuclear dossier, has prepared the ground for such an initiative, and which stands ready to work closely with our Member States in order to bring peace and stability to Syria and Libya. To facilitate its task, the Commission is today proposing to set up an emergency trust fund, initially endowed with EUR 1.8 billion from the Union's financial means, in order to resolve crises affecting the Sahel and Lake Chad regions, the Horn of Africa and North Africa. We want to help bring about lasting stability, for example by creating job opportunities in local communities, and thereby addressing the root causes of instability, forced displacement and irregular migration. I count on the contribution of all Member States and hope that they will live up to our ambitions. I would not want to suggest that the refugee crisis will be resolved quickly, because it is not. But turning back the boats that arrive in our ports, setting fire to the refugee camps or ignoring people who are in misery and left to fend for themselves: this is not Europe. Europe is the baker from Kos who offers his bread to these hungry and exhausted men and women. Europe is those students in Munich and Passau who bring clothes to newcomers at the station. Europe is the policeman in Austria who welcomes exhausted refugees when they cross the border. It is in this Europe that I want to live. This crisis is serious and there is still a long way to go. I am counting on you, in this Parliament, and on all the Member States to show that Europe has the courage to move forward, while respecting our common values and our history. A new start for Greece, for the euro zone and for the European economy Mr President, ladies and gentlemen, I said that I wanted to speak today about the big problems. This is why this State of the Union address must address the issue of the situation in Greece, as well as, more generally, the lessons learned from the Greek crisis, which is now in its fifth year, and whose impact continues to be felt in the euro area and across Europe's economy and society. Since the beginning of the year, the negotiations on the Greek file have put our patience to the test. A lot of time and trust was lost. Bridges have been burned. Some words have been said that are hard to erase. We have witnessed political posturing, quarrels, insults hurled indiscriminately. Too often, we have seen some want to impose their point of view without any consideration for that of others. We have seen eurozone democracies pitted against each other. During these months, the economic recovery and job creation that had been observed last year in Greece were reduced to nothing. We have collectively approached the abyss. And once again, it's only once on the edge of the precipice that we have come to realize the full extent of what is at stake and to assume our responsibilities. An agreement was finally reached, commitments were made and implemented. Confidence is beginning to be restored, even if it remains very fragile. I am not proud of all aspects of the results obtained. But I am proud of the teams of the European Commission who, until late August, worked day and night, tirelessly, to reconcile diametrically opposed positions and bring solutions that are in the interest of Europe and the Greek people . I know not everyone was happy with what the Commission did. Many Greek politicians did not appreciate our insistence that Greece carry out reforms, including its unsustainable pension system and unfair tax regime. Many other European politicians could not understand why the Commission continued to negotiate. Some did not understand why we did not simply leave all the discussions to the technicians of the International Monetary Fund, or why we also talked about the social dimension of the commitments made under the program, and why we wanted them changed to take into account their impact on the most vulnerable people in society. Or that I personally dare to repeat, again and again, that the euro and membership of the euro must be irreversible. Mr President, Ladies and Gentlemen, The Commission's mandate during negotiations with a program country, such as Greece, has a very clear legal basis: it is the Treaty on European Union, which mandates the Commission to promote the general interest of the Union and to enforce Union law. This right includes this clause of the treaties approved by all the Member States and qualifying the membership of the euro as irrevocable. As long as the Member States do not modify the Treaties, I believe that the Commission and all the other European institutions will have a clear mandate and a duty to do everything possible to preserve the integrity of the euro zone. In addition, the Treaty establishing the European Stability Mechanism (ESM), which has been ratified by all euro area Member States, expressly entrusts the Commission with the conduct of negotiations with a Member State on the program of which it is the subject. It must do so in conjunction with the European Central Bank and, where possible, with the International Monetary Fund. But we have been clearly mandated for this. When the Treaties speak of the Commission, I understand that to mean the Commission as an institution which is politically directed by the President and the College of Commissioners. That is why I did not leave the negotiations with Greece entirely in the hands of the Commission bureaucracy, despite their great expertise and hard work. I regularly spoke personally with our experts, often several times a day, to orient them or to guide their work. I also ensured that every week the state of the negotiations on Greece was discussed in depth and very politically during the meetings of the college. Because determining whether the VAT increase should apply only to catering or also to processed food products is not a technical question, it is a political and social question. It is not a technical question, but a deeply political question of knowing whether to raise the VAT on medicines in a country where 30% of the population is no longer covered by the public health system because of the crisis. Or whether to reduce military spending instead, in a country where it remains among the highest in the EU. It is certainly not a technical question of whether to reduce the pensions of the poorest or the minimum wage; or whether a tax should instead be levied on Greek shipowners. Obviously, it was necessary that in the end, the accounts fall just for this third Greek program. But we did it with social equity in mind. I have read the European Parliament's report on the Troika very carefully. I hope you have seen that we have learned from this; for the first time, we carried out a study of the programme's social impact. Although I must frankly admit that the Commission also sometimes had to make compromises during these negotiations. What matters to me is that in the end, we have been able to find a compromise that can be accepted by each of the 19 Member States of the euro zone, including Greece. After weeks of discussions, small advances, repeated setbacks, many moments of crisis, and often with a good dose of drama, we managed, on August 19, to sign a new stability support program for Greece. Now that the new program is in place, I want it to be a new start, for Greece and for the whole euro zone. Let's be very honest; we are only at the very beginning of a new and long road. For Greece, the main thing now is to implement what has been agreed. This requires broad political ownership. Before the final deal is done, I received in my office the leaders of the main Greek political groups. They all promised to support the agreement and they gave a first proof of their commitment when they voted, in the Greek Parliament, in favor of the new program and the first three waves of reforms. I expect them to keep their word and respect the agreement, no matter which government leads the country. What Greece needs is for the reforms to be widely supported and quickly implemented, in order to restore the confidence of Greek citizens and also confidence in the Greek economy. The program is one thing, but it is not enough to put Greece back on a sustainable growth path. The Commission will stand with Greece to ensure that the reforms are carried out. And we are going to help the country to develop a growth strategy that is fully Greece's responsibility. Whether it concerns the modernization of public administration or the independence of tax authorities, the Commission will provide tailor-made technical assistance, with the help of European and international partners. This will be the main mission of the new structural reform support service that I set up in July. On July 15, the Commission also presented a proposal aimed at limiting national co-financing in Greece and accelerating the financing of cash-strapped investment projects: a €35 billion envelope for growth. This is urgent to promote recovery, after months of financial pressures. These are funds that will reach the real economy of Greece, and allow companies and public authorities to invest and recruit. The Commission has worked tirelessly to develop this proposal. National parliaments met several times during the month of August. I therefore hope that the European Parliament will also play its part, in accordance with the commitments it has made previously. Our program for growth in Greece has been on the table in Parliament for two months. If passed, it will take several more weeks before the first euro reaches Greece's real economy. I invite you to follow the example of the Council, which will agree on this growth program by the end of the month. The European Parliament should be at least as quick as the Council on this dossier. I said that I wanted the new program to be a new start not only for Greece but also for the whole euro zone, because we have important lessons to learn from this crisis which has haunted us for far too long. The economic and social situation speaks for itself: there are still more than 23 million unemployed people in the European Union today, more than half of whom have been unemployed for at least a year. In the euro zone alone, more than 17.5 million people are unemployed. The recovery of our economy is hampered by global uncertainties. Public debt in the EU averages over 88% of GDP, and nearly 93% in the euro area. The crisis does is not yet behind us. She just paused. This does not mean that nothing is happening: unemployment figures are improving, GDP is growing at its fastest pace in years, and financing conditions for households and businesses have improved significantly. And several Member States, such as Latvia, Ireland, Spain and Portugal, which had been badly affected and had benefited from European financial assistance, are now experiencing constant growth and making progress in restoring their economy. This is progress, but the recovery is too slow, too fragile and too dependent on our external partners. More fundamentally, the crisis has widened very wide gaps within the euro zone and the EU as a whole. It has altered our growth potential. It has accentuated the existing long-term trend of rising inequality. All of this has fueled doubts about social progress, the value of change and the merits of belonging to a common destiny. What we need is to restart a process of convergence, both between Member States and within our societies, with productivity, job creation and social fairness at its heart. We need more Union in our Europe. For the European Union and for my Commission in particular, that means two things: firstly, investing in the sources of jobs and growth in Europe, particularly in our single market, and, secondly, completing our Economic and Monetary Union in order to create the conditions for a sustainable recovery. We are acting on both fronts. Together with you and with the Member States, we launched the €315 billion Investment Plan for Europe, with a new European Fund for Strategic Investments (EFSI). Less than a year after I announced this plan, we are now at the stage where several of the first projects have started: 40,000 households throughout France will see their energy bills lowered and 6,000 jobs will be created thanks to an improvement energy efficiency of buildings financed by the Fund. In the Barcelona clinics, patients will benefit from more effective treatment using plasma-derived therapies, again financed by the Fund. In Limerick and other parts of Ireland, families will have better access to primary health care and social services thanks to the construction of fourteen new primary health care centres. It's only a beginning. Many other projects of this type will follow. As we roll out our investment plan, we are improving our internal market to create more opportunities for citizens and businesses in all 28 Member States. Through the Commission's initiatives for a Digital Single Market, a Capital Markets Union and an Energy Union, we are reducing barriers to cross-border business and using our continent's size to boost innovation, connect talents and offer a wider choice of products and services. But our efforts for greater prosperity will remain in vain if we do not learn a painful lesson, namely that we have not yet convinced the citizens of Europe and the rest of the world that our Union is not dedicated to survive, but can also thrive and prosper. Make no mistake: our collective inability to provide a clear and rapid response to the Greek crisis over the past few months has weakened us all. It damaged confidence in our single currency and the reputation of the EU in the world. 'No wind is made for him who has no destined port' — we must know where we are heading. This is the very essence of the report that I presented last June with the other presidents of the European institutions concerning the completion of our Economic and Monetary Union. It went without saying to me that President Schulz should be associated with this important work. After all, Parliament is the heart of democracy at Union level, just as national parliaments are the heart of democracy at national level. The European Parliament is and must remain the Parliament of the euro area. And the European Parliament, in its role as co-legislator, will be responsible for deciding on the new initiatives that the Commission will propose in the months to come in order to deepen our Economic and Monetary Union. I am therefore happy that, for the first time, we have drawn up a "five presidents' report", and not "of the four presidents". Despite months of late-night talks to strike a deal on Greece, we wrote this report in May and June to set the course for a stronger future. The five presidents of the main EU institutions have approved a roadmap which should enable us to stabilize and consolidate the euro area by the beginning of 2017 and then, on the basis of a restored convergence of our economies, to carry out deeper reforms and to move, where we can, from crisis resilience to new growth prospects. As we expected, the Five Presidents' Report sparked a lively debate across Europe. Some plead for a government of the euro zone. of others say we need more discipline and respect for the rules. I agree with both: we need collective responsibility, an increased sense of common interest and also respect and full implementation of everything that has been collectively agreed. But I do not agree that this implies multiplying institutions or putting the euro on automatic pilot, as if new institutions or miracle rules could do more or better. A single currency is not managed solely on the basis of rules and statistics. This requires constant political judgment on which to base new choices of economic, budgetary and social policies. The Five Presidents' Report represents a comprehensive work program for the coming years, and I want us to make rapid progress on all fronts — economic, financial, budgetary and political. Some efforts should focus on the euro area, while others should be open to all 28 Member States because of their close interaction with our single market. Allow me to highlight five areas in which the Commission will present ambitious proposals without delay and on which we expect progress already this autumn. First: the five presidents agree that we need a common system guaranteeing citizens that their bank savings will always be protected, up to a maximum of €100,000 per person and per account. This is the missing part of our Banking Union. Today, such protective devices exist, but they are all national. We need a more European system, detached from comppublic, so that citizens can be absolutely sure that their savings are safe. We have all seen what happened in Greece during the summer. Citizens, who had lost faith in the financial capacity of the state to support its banking system, understandably withdrew their savings. This must change. A more common deposit guarantee scheme is urgently needed, and the Commission will present a legislative proposal on the first steps in this direction before the end of the year. I am of course fully aware that there is no consensus on this yet. But I also know that many of you are as convinced as I am of the need to move forward. To those who are more skeptical, I say this: the Commission does not ignores the differences that currently exist between Member States. Some of them have already developed a national deposit guarantee scheme and ensured its financing. Others are still working on it. We must take these differences into account. This is the reason why the report of the five presidents does not advocate complete pooling, but a new approach consisting of a reinsurance system. We will present more details on this in the coming weeks. Second: we need a stronger representation of the euro on the world stage. How is it possible that the euro zone, which has the second currency in the world, still unable to speak with one voice on economic issues in international financial institutions? Imagine for a moment the daily work at the International Monetary Fund. We are well aware of the importance of the IMF. Yet, instead of speaking with one voice on behalf of the eurozone, Belgium and Luxembourg must agree on their voting position with Armenia and Israel, while Spain is included in a joint group with Latin American countries. How is it that we Europeans, who are jointly major shareholders in global institutions such as the IMF and the World Bank, we still find ourselves acting in a minority position? How is it possible that when a new strategically important infrastructure investment bank is created in Asia, European governments, rather than coordinating their efforts, race to be a member before the others? It is time to grow and put our common interests ahead of our national interests. In my opinion, the president of the Eurogroup should be the natural spokesperson for the euro zone in international financial institutions such as the IMF. Third: we need a system of economic and budgetary surveillance that is both more effective and more democratic. I hope that the European Parliament, the national parliaments, as well as the social partners at all levels, are key players in this process. I also want the interest of the euro area as a whole to be better taken into account from the outset in European and national policies: the interest of the whole is greater than the sum of the parts. This will be reflected in our proposals to further simplify and strengthen the European Semester of economic policy coordination. In the future, I no longer want our recommendations on the economic orientation of the euro zone to be empty words. I want them to give real direction, especially with regard to the fiscal stance of the euro area as a whole. Fourth: we need to make our tax policies fairer. This requires both more transparency and more fairness, for citizens and for businesses. We presented an action plan in June, the substance of which is as follows: the country where the company makes its profits must also be the country of taxation. Our work on a common consolidated corporate tax base is a step in this direction. This simplification will make tax evasion more difficult. We are also working tirelessly with the Council to conclude, by the end of the year, an agreement on the automatic exchange of information on tax rulings. At the same time, we expect our investigations into the various national regimes to produce results very soon. And we are working hard to get Member States to adopt the details of a financial transaction tax by the end of the year. We need more Europe, more Union and more fairness in our fiscal policy. Fifthly: we must step up our action for a fair and truly pan-European labor market. Fairness, in this context, means promoting and safeguarding the free movement of citizens, a fundamental right of our Union, while avoiding abuses and the risks of social dumping. Labor mobility is desirable and necessary for the prosperity of the euro area and the single market, but it must be based on clear rules and principles. The key principle must be to ensure the same salary for the same job in the same place. As part of these efforts, I want to develop a European pillar of social rights that takes into account the evolution of European societies and the world of work. And which can serve as a compass for the return to convergence in the euro zone. This European Pillar of Social Rights should complement what we have already done in terms of protecting workers in the European Union; identify the fundamental elements, common to all, relating to working conditions, health and safety at work, equal treatment between women and men, situations of unemployment and, more generally, social conditions and access to social protection systems. I hopes that the social partners will play a central role in this process. I think we are doing well to start this initiative within the euro area, while allowing other EU Member States to join if they wish. As stated in the Five Presidents' Report, we will also have to consider other more fundamental steps with regard to the euro area. The Commission will present a white paper on this subject in the spring of 2017. Yes, we will eventually need to set up a Eurozone Treasury, which is responsible at European level. I think that this Treasury should rely on the European Stability Mechanism (ESM) which we created during the crisis and which, with a lending capacity of 500 billion euros, has a strike force as important as the IMF. The ESM should gradually assume a broader macroeconomic stabilization function in order to better deal with shocks that cannot be managed solely at the national level. We will prepare the ground for this to happen in the second half of this mandate. The European Union is a dynamic project. A project at the service of citizens. There are no winners or losers. We all receive more than we give. It is a unique and comprehensive project. It is also a message to our British partners, of whom I think when I consider the major political challenges of the months to come. A fair deal for the UK Since I took office, the situation regarding the UK has become clearer: before the end of the year 2017, there will be a referendum to know if he stays in the Union or not. The decision will of course rest with the voters of the United Kingdom. But it would be neither honest nor realistic to claim that it will be of no strategic importance for the Union as a whole. I have always said that I want the UK to stay in the European Union. And that I want to work with the UK government to find a fair deal for the UK. The British ask fundamental questions of the Union, about the very essence of the Union. Does the Union bring prosperity to its citizens? Does it focus on areas where it can produce results? Is the Union open to the rest of the world? These are all questions to which the EU has answers, not just for the UK. All 28 Member States want the European Union to be modern and to act in a targeted way in the interest of all its citizens. We all agree that the Union must adapt and evolve in the face of the major challenges and the crisis it is facing at the moment. This is why we are completing the single market, removing red tape and improving investment conditions for small businesses. That's why we're creating a Digital Single Market – so that wherever you are in the EU, you can pay the same price for car hire over the internet. We are modernizing EU rules on human rights author – in order to improve citizens' access to online cultural content while guaranteeing their authors fair remuneration. And just two months ago the EU pledged to scrap roaming charges from the summer of 2017, a move many tourists and travellers, especially the British, have been calling for since years. This is why we are negotiating trade agreements with leading countries like the Transatlantic Trade and Investment Partnership. That's why we're opening up markets and breaking down barriers for businesses and workers in all 28 EU Member States. I am personally committed to improving the way the Union works with national parliaments. I have included in the mission letter of all the members of my Commission the obligation to interact more closely with national parliaments. I am convinced that strengthening our relations with national parliaments will bring the Union closer to its citizens. I know that Prime Minister David Cameron also shares this ambition and I have no doubt that we will find a common answer. More than a year ago, when I was campaigning for the Commission Presidency, I promised that, once President, I would strive to seek a fair solution for the UK. Fair not only for him, but also for the other 27 Member States. I want to preserve the integrity of the four freedoms of the single market while seeking ways to deepen the integration of the euro area to strengthen the Economic and Monetary Union. Part of the solution to achieving a deal that is fair to the UK will be to acknowledge the reality that not all Member States participate in all EU policy areas. Specific protocols set out the UK's position, for example on the euro and on justice and home affairs. In order to be fair to other Member States, the UK's choices should not prevent them from moving towards further integration in areas where they see fit. I will endeavor to find a fair deal for the UK. And I will do it for one and only reason: because I am convinced that the EU is better off with the UK and the UK is better off being in the EU. In key areas, we can achieve much more by acting collectively than by acting individually. This applies in particular to the immense challenges which Europe is currently facing in terms of foreign policy and which I will now refer to. United with Ukraine Europe is only a small part of the world, but if we have anything to offer it is our knowledge and our driving force. About a century ago, one in five of the planet's inhabitants lived in Europe; today it is one in nine and in a hundred years it will be one in twenty-five. I am convinced that we Europeans can and must play our due role on the international stage, not out of vanity, but because we really have something to offer. We can show the world the strength we draw from our unity and the strategic value of acting together. It has never been more urgent and important to do so. There are currently more than 40 conflicts in the world. While these conflicts are raging, families are broken up and homes are devastated, I cannot come before you, almost 60 years after the birth of the European Union, to talk to you about peace. Because the world is not at peace. If we want to promote a world where peace reigns, we need more Europe and more Union in our foreign policy. The situation in Ukraine is the most pressing. The challenge of helping Ukraine to survive, reform and prosper is a European challenge. Because, in the end, the dream of Ukrainians, the dream of Maidan Square, is a European dream: that of living in a modern country, with a stable economy and a solid and fair political system. Over the past 12 months, I have come to know President Poroshenko well, whether at a summit, over dinner at his house, or through numerous meetings and countless phone calls. He initiated the transformation of his country. He fights for peace. He deserves our support. We have already done a lot, by releasing a loan of EUR 3.41 billion under three macro-financial assistance programmes, by facilitating the conclusion of an agreement that will guarantee Ukraine's gas supply this winter and providing advice on the reform of the judiciary. If we are to succeed, the EU and all its Member States must contribute to this effort. We must also preserve our unity. We must be united when it comes to the security of our member states in the East, especially the Baltic countries. The security and borders of the Member States of the European Union are inviolable. I want Moscow to understand this clearly. We must be united when it comes to sanctions. The sanctions that the European Union has imposed on Russia have a cost for each of our economies, and they have repercussions on important sectors, such as agriculture. But sanctions are a powerful tool in response to the aggression and violation of international law. They will have to be maintained as long as the Minsk agreements are not fully respected. We must maintain our composure and our unity. But we must also continue to seek solutions. At the G20 summit in Brisbane, I spoke with President Putin in a bilateral meeting that continued all night and did not end until the early morning. We remembered that we had known each other for a long time and that since then times had changed a lot. The spirit of cooperation between the EU and Russia has given way to suspicion and mistrust. The EU must show Russia that confrontation has a cost, but it must also make it clear that it is ready to engage. I do not want to' a Europe that is content to be a spectator of history. I want a Europe that plays a leading role. When the European Union acts united, it can change the world. A united Europe at the forefront of the fight against climate change Action on climate change offers an example of an area where Europe is already playing a leading role. In Europe, we have all known for a long time that climate change is a major global issue. The planet we share, including its atmosphere and the stability of its climate, cannot withstand humanity's current use of it. Some parts of the world are living beyond their means, accumulating a carbon debt with no intention of reducing it. Gold, as economics and crisis management have taught us, living beyond your means is not sustainable behavior in the long run. Nature will soon present the bill to us. In some parts of the world, climate change is changing the sources of conflict – controlling a dam or a lake may be more strategic than controlling an oil refinery. Climate change is even one of the root causes of a new migratory phenomenon. If we do not act quickly, we will face a new challenge: that of climate refugees. In 90 days, world leaders will meet in Paris to agree on the steps to be taken to achieve one goal: to ensure that the Global temperature increase remains below 2 degrees Celsius. The EU is on the right track and made a clear commitment as early as March: a binding target, covering its entire economy, of at least 40% reduction in emissions by 2030 compared to 1990 levels. This is the most ambitious contribution presented to date. Others follow, some only reluctantly. Let our international partners make no mistake: the EU will not sign just any agreement. My priority, Europe's priority, is to adopt a global climate agreement that is ambitious, solid and binding. This is why the Commission and I have spent part of this first year mobilizing support for an ambitious agreement in Paris. Last May, I traveled to Tokyo, where I challenged Prime Minister Shinzo Abe to work with us to make Paris a worthy successor to Kyoto. In June, at the G7 summit, leaders agreed to develop long-term low-carbon strategies and to phase out the use of fossil fuels by the end of the century. Subsequently, I met with Chinese Premier Li Keqiang to prepare for the Paris summit and to launch a partnership to ensure that today's cities are designed to meet the future energy and climate needs. Finally, in coordination with the High Representative, the members of the College took part in diplomatic efforts on climate. Today, Commissioner Arias Cañete is in Papua New Guinea to discuss plans for the Paris summit with leaders of the Pacific Islands Forum. If corrective measures are not taken to tackle climate change, the current trend will worsen and the fate of these islands will prefigure planetary catastrophe. On the other hand, if an agreement is reached in Paris, humanity will have for the first time an international regime to effectively combat climate change. Paris will be the next step, but not the last. If there is a route to Paris, there is also one that will leave from Paris. My Commission will do everything to ensure that Europe remains at the forefront of the fight against climate change. We will practice what we preach to ourselves. Certainly we do we have no miracle solution to combat climate change. But our regulatory tools, such as the EU Emissions Trading Scheme, and the actions we have already taken have allowed us to reduce carbon emissions while preserving our economy. Our forward-looking climate policy will also help us deliver much-needed results against the targets set by the Energy Union: it secures us a global leadership position in the renewable energy sector, which currently employs more than of one million people in the Union and generates a turnover of 130 billion euros, of which 35 billion euros are exports. European companies now hold 40% of all renewable energy patents are now accounted for, and the pace of technological change is increasing the potential for global trade in green technologies. This is why innovation and the interconnection of our markets occupy a strategic place in the implementation of the Energy Union. The fight against climate change will not be won or lost in diplomatic debates in Brussels or Paris. It will be on the ground and in the cities where most Europeans live, work and consume around 80% of the energy produced in Europe. This is why I have asked President Schulz to host the 'Covenant of Mayors' meeting in Parliament next month. It will bring together more than 5,000 European mayors who have all committed to achieving the CO2 emissions reduction target set by the EU. I hope that all members of this Assembly will support the action of local authorities across Europe to make the Paris Summit and its follow-up a success. Conclusion Mr President, ladies and gentlemen, there are many other aspects that I have not mentioned and will not be able to mention today. For example, I would have liked to talk to you about Cyprus and my hope, my ambition and my wish to see the island unified next year. After the long interview I had in July with Presidents Nikos Anastasiades and Mustafa Akinci, on the demarcation line, I am convinced that if the two leaders demonstrate the necessary vision and political will, this reunification is achievable under current conditions and provided that good coordination is maintained in the efforts deployed by the United Nations and the European Union . I will give my full support and assistance to help achieve this goal, as I believe that there is no place for walls and barriers in an EU Member State. I did not mention the European farmers who demonstrated in Brussels this week. I agree with them, there is something wrong with the market if a liter of milk costs a third of the price of a liter of water. However, I do not think that we can or should micromanage the milk market from Brussels. We must compensate the farmers who are suffering from the effects of the sanctions against Russia. This is why the Commission has put on the table a solidarity package of EUR 500 million for farmers. European and national competition authorities should take a close look at the structure of the market. Something has turned in the milk market. My impression is that we will have to break some oligopolies in the distribution sector. There are still many more things to say, but in addressing the major issues and challenges facing us today, one thing is clear to me: whether it is the refugee crisis, I' economy or foreign policy, we can only succeed if we are a Union. What is this Union which represents the 507 million citizens of Europe? The Union is not just Brussels or Strasbourg. The Union is the European institutions. The Union is also about the Member States. These are national governments and parliaments. It only takes one of us failing in our responsibilities for all of us to stumble. Europe and the Union must rise to the occasion. Whilst being a strong supporter of the Community method in normal times, I am not a purist in times of crisis — I do not attach importance to how we deal with a crisis, whether through intergovernmental solutions or through community-driven processes. Provided that we find solutions and obtain results in the interest of European citizens. On the other hand, when we find that a method has weaknesses, we must modify our approach. Take the example of the relocation mechanism for refugees that we presented for Greece and Italy in May: the Commission proposed a binding Community solidarity system. Member States opted instead for a voluntary approach. Result: the figure of 40,000 people was never reached. Not a single person in need of protection has yet been relocated, with Italy and Greece left alone to deal with the situation. It is simply insufficient. Look at intergovernmental solutions such as the 2011 fiscal pact aimed at strengthening fiscal discipline, or the 2014 agreement on the creation of a common bank resolution fund. We see today that no Member State has fully implemented the fiscal compact, and that only 4 out of 19 Member States have ratified the agreement on the bank resolution fund, which is supposed to be launched on January 1, 2016. This is simply not enough to meet the immense challenges that we face today. We need to change the way we work. We need to act faster. We must be more European in our method. Not because we want to concentrate power at European level, but because we urgently need to produce better and faster results. We need more Europe in our Union. We need more Union in our Union. All my life I have believed in Europe. I have reasons for this, some of which, I know very well, I am relieved, do not mean anything to today's generations. When I took office, I said I wanted to rebuild bridges that were starting to crumble. Where the bonds of solidarity had begun to crumble. Where the old demons sought to resurface. We still have a long way to go. But when, in a few generations, people will read in European history textbooks the passages concerning the period we are going through, may they read that we stood together, showed compassion, and opened our homes to those who needed our protection. That we have joined forces to address global challenges, protect our values and resolve conflicts. That we have ensured that taxpayers never again have to pay for the greed of financial speculators. That, hand in hand, we have ensured the growth and prosperity of our economies, in the interest of our businesses and above all of our children. May they read that we have forged a Union stronger than ever. May they read that together we have made European history. A story that our grandchildren will tell with pride. Mr President, Ladies and Gentlemen, Members of the European Parliament, One year ago, I stood here before you, and I told you that the state of our Union was not good. I told you that there was not enough Europe in this Union. And not enough Union in this Union. Today, I do not come to appear before you to tell you that from now on everything is fine. No, this is not the case. Let's all be very honest in our diagnosis. Our European Union is going through, at least in part, an existential crisis. During the summer, I listened carefully to Members of this Parliament, representatives of national governments, many national parliamentarians and European citizens, who expressed their feelings to me. I have witnessed several decades of European integration. There were a number of strong moments. There have also been many difficult times, and times of crisis. But never before have I seen such little common ground between our Member States. Such a small number of areas in which they agree to work together. Never before have I heard so many leaders speak only of their national problems, and only mention Europe in passing, insofar as they mention it. Never before have I seen representatives of the institutions of the Union set such different priorities, sometimes in direct opposition to national governments and parliaments. It is as if there were hardly any more meeting points between the Union and its national capitals. Never again, I do I had seen national governments so weakened by populist forces and paralyzed by the risk of losing the next elections. Never before have I seen such fragmentation and so little convergence in our Union. We now have a very important choice to make. Are we giving in to a natural sense of frustration? Do we allow ourselves to sink into a collective depression? Do we want to let our Union decay before our eyes? Or do we think it's time to pull ourselves together, roll up our sleeves and double or even triple our efforts? Doesn't Europe now need more determined leaders than ever, rather than politicians who are abandoning ship? Our first thoughts on the state of Union must be posed with realism and with great honesty. First, we have to admit that there are many unresolved issues in Europe. There can be no doubt. Starting with high unemployment and deep social inequalities, the accumulation of public debts and the enormous challenge of integrating refugees to the very real threats to our internal and external security; each Member State of the Union is prey to the incessant crises of our time. We even face the sad prospect of seeing a member leave our ranks. Second, we must be aware that the whole world is watching us. I have just returned from the G20 summit in China. Europe occupies 7 seats at the table of this important global forum. Despite the size of our representation, the questions far outnumbered the common answers we had to offer. Will Europe still be able to conclude trade agreements and propose economic, social and environmental standards to the world? Will Europe's economy finally recover, or will it remain stuck in weak growth and low inflation for the next decade? Will Europe remain at the forefront of the fight for human rights and fundamental values? Will Europe speak with one voice when the territorial integrity of a country is threatened, in violation of international law? Or will Europe disappear from the international scene leaving it to others to shape the world? I know that in this assembly, you would like that too give clear answers to these questions. But our words must be followed by joint action. Without that, they will remain what they are: nothing but words. And with mere words, you cannot influence international affairs. Third, we must admit that we cannot solve all our problems with one more speech. Nor with one more vertex. This is not the United States of America, where the President delivers his State of the Union address to both houses of Congress, while millions of citizens listen intently to his every word, live on television. By comparison, this State of the Union moment here in Europe shows very clearly the incomplete nature of our Union. Today I addressed to the European Parliament. And then, on Friday, I will meet the national leaders in Bratislava. My speech is not measured solely by your applause, ignoring what national leaders will say on Friday. Nor can I go to Bratislava with a message other than the one I am bringing to you today. I have to take into account the two levels of democracy in our Union, which are of equal importance. We are not the United States of Europe. Our European Union is much more complex. Ignoring this complexity would be a mistake, and would lead us to adopt the wrong solutions. Europe can only function if the speeches defending our common project are made, not only before this honorable assembly, but also before the parliaments of all our Member States. Europe can only work if we all work in favor of what unites us and brings us closer, leaving aside the conflicts of competences and the rivalries between institutions. Only then will Europe be more than the sum of its parts. Only then can Europe be stronger and better than it is today. Only then can the leaders of the institutions of the Union and the national governments restore the confidence of European citizens in our common project. Because Europeans are tired of endless arguments, quarrels and bickering. Europeans want concrete solutions to the very relevant problems facing our Union. And they expect more than promises, resolutions and conclusions from summits. They have seen and heard too much. Europeans want joint decisions that are implemented quickly and efficiently. Yes, we need a long-term vision. And the Commission will outline this vision for the future in a White Paper which it will publish in March 2017, on the occasion of the 60th anniversary of the Treaties of Rome. We will look at ways to strengthen and reform our Economic and Monetary Union. And we will also take into account the political and democratic challenges that our Union of 27 will have to face in the future. And, of course, the European Parliament will be closely involved in the process, as will the national parliaments. But simply having a vision will not be enough. What our citizens need much more is someone to govern. that someone one responds to the challenges of our time. Europe is like a rope made up of many threads – it only works when we all pull in the same direction: EU institutions, national governments and national parliaments, together. And we need to show again that it is possible, in a number of areas where the need for common solutions is most pressing. I therefore propose a positive program of concrete European actions, to be carried out over the next twelve months. Because I believe that these next twelve months will be decisive, if we want to reunite our Union. If we are to overcome the tragic divisions that have emerged between East and West in recent months. If we want to show that we can act quickly and decisively when it really matters. If we want to show the world that Europe is still a force capable of joint action. We have to get to work. This morning I sent President Schulz and Prime Minister Fico a letter containing the same message. The next twelve months will be crucial for building a better Europe: a Europe that protects; a Europe that preserves our European way of life; a Europe that empowers our citizens; a Europe that defends, internally and externally; and a Europe that takes its responsibilities. A EUROPE THAT PRESERVES OUR WAY OF LIFE I am convinced that the European way of life is something worth preserving. I have the impression that many have forgotten what it means to be European. What it means to be part of this Union of Europeans – what the farmer from Lithuania has in common with the single mother from Zagreb, the Maltese nurse or the student from Maastricht. We must remember why the nations of Europe have chosen to work together. We must remember why the crowds celebrated solidarity in the streets of Warsaw on May 1, 2004. We must remember why the European flag flew proudly over the Puerta del Sol on January 1, 1986. We must remember that Europe is a driving force which can contribute to the unification of Cyprus – an undertaking for which the two Cypriot leaders have my full support. Above all, Europe is synonymous with peace. It is no coincidence that the longest period of peace in European history began with the formation of the European Communities. 70 years of uninterrupted peace in Europe. In a world where there are 40 active armed conflicts, which each year claim the lives of 170,000 people. Of course, we don't always agree. Yes, controversial issues often oppose us. And sometimes we clash. But we confront each other with words. And we settle our disputes around a table, not in the trenches. An integral part of our European way of life are our values. The values of freedom, democracy, the rule of law. Values defended for centuries on the battlefields and on improvised stands. We Europeans can never accept Polish workers being harassed, beaten up or even murdered in the streets of Harlow. The free movement of workers is as much a part of our common European values as the fight against discrimination and racism. We Europeans are firmly opposed to the death penalty. Because we believe in the value of human life and we respect it. We Europeans also believe in the independence and efficiency of judicial systems. Independent courts are a check on the power of governments, corporations and individuals. Effective justice systems support economic growth and uphold fundamental rights. This is why Europe promotes and defends the rule of law. Being European also means being open and doing business with your neighbours, instead of going to war with them. VS' is part of the largest trading bloc in the world, with trade agreements concluded or under negotiation with more than 140 partners worldwide. Trade means jobs – every billion euro of exports represents 14,000 additional jobs created in the EU. And more than 30 million jobs, or 1 in 7 jobs in the EU, now depend on our exports to the rest of the world. This is why Europe is striving for open markets with Canada – one of our closest partners, which also shares our interests, our values, our respect for the rule of law and our concept of cultural diversity. The EU-Canada trade agreement is the best and most progressive agreement ever negotiated by the EU. And I will work with you, and with all Member States, to get this agreement ratified as soon as possible. Being European means having the right to have your personal data protected by strong legislation, European legislation. Because Europeans don't like drones hovering over their heads to record their every move, or companies logging their every mouse click. This is why the Parliament, the Council and the Commission agreed last May on a common European regulation on data protection. This strict European legislation applies to companies, wherever they are located, whenever they process our data. Because in Europe, privacy is not an empty word. It is a question of human dignity. Being European also means being subject to fair rules. This means that workers should receive the same pay for the same work in the same place. It is a question of social justice. And that is why the Commission supports the proposal for a directive on the posting of workers. The internal market is not a place where Eastern European workers can be exploited or subject to lower social standards. Europe is not the Wild West, it is a social market economy. Fair rules also mean that consumers in Europe are protected from agreements between large companies and their abusive practices. And that every business, regardless of size, has to pay taxes where it makes a profit. This is also applies to giants like Apple, even if their stock market value exceeds the GDP of 165 countries in the world. In Europe, we do not accept that powerful companies secretly obtain illegal agreements on their taxes. The level of taxation of a country like Ireland is not in question here. Ireland has the sovereign right to set its level of taxation as it sees fit. But it is not fair that a company can evade tax the proceeds of which could have benefited Irish families, businesses, schools and hospitals. The Commission guarantees this fairness. This is the social aspect of competition law. And that is what Europe stands for. Being European also means, in an increasingly globalized environment, to a culture of protection for our workers and our industries. Take the case of the thousands of people who risk losing their jobs in Gosselies, Belgium – it is thanks to European legislation that the company in question will now have to engage in real social dialogue. And both workers and local authorities can count on European solidarity and the support of European Union funds. Being European also means defending our steel industry. We have already taken 37 anti-dumping and anti-subsidy actions to protect our steel industry from unfair competition. But we need to do more, because overproduction in some parts of the world is crowding out European producers. VS' that's why I've been to China twice this year to deal with this overcapacity problem. This is also the reason why the Commission has proposed to modify the lesser duty rule. The United States imposes a 265% import duty on Chinese steel, while here in Europe some governments have for years insisted that we lower the duties on this commodity. I call on all Member States and on this Parliament to support the Commission in strengthening our trade defense instruments. We must not be naïve supporters of free trade, but be able to react to dumping with the same firmness as the United States. An essential part of our European way of life, which I want to preserve, is our agricultural sector. The Commission will always be present alongside our farmers, especially when they are going through difficult times as is currently the case. Last year, the dairy sector was hit by the embargo imposed by Russia. The Commission has therefore mobilized 1 billion euros for the benefit of dairy producers, in order to help them recover. Because I will not accept that milk is cheaper than water. Being European, for most of us, also means having the euro. During the global financial crisis, the euro remained strong and protected us from even greater instability. The Euro is one of the major international currencies and brings enormous, though often invisible, economic benefits. Eurozone countries have thus saved 50 billion euros this year in interest payments, thanks to the monetary policy of the European Central Bank. 50 billion additional euros, which our finance ministers can and are supposed to invest in the economy. ECB President Mario Draghi oversees the stability of our currency. And it contributes more to jobs and growth than many of our Member States. Yes, we Europeans have suffered from a historic financial and debt crisis. But the truth is that public deficits, which in 2009 amounted to 6.3% on average in the euro zone, are now less than 2%. Over the past three years, nearly 8 million additional people have found employment. a million between them in Spain alone, a country that continues to recover from the crisis at an impressive pace. I wish all of this was repeated more often – everywhere in Europe where elected politicians speak. Because in our incomplete Union, there is no European authority that can replace national authorities. European nations must defend the case for unity. No one can do it for them. They are capable of it. We can be united despite our diversity. The great democratic nations of Europe must not bend under the wind of populism. Europe must not allow itself to be impressed by terrorism. No. And Member States must build a Europe that protects. And we, the European institutions, we need to help them keep that promise. AN EMPOWERED EUROPE The European Union should not only preserve our European way of life, but also empower those who live it. We must work for a Europe that empowers its citizens and its economy. And today, citizens and the economy have entered the digital age. Digital technologies and digital communications permeate every aspect of our lives. All we need is high-speed internet access. We need to be connected. Our economy needs it. Everyone needs it. And we need to invest in that connectivity now. This is why the Commission is now proposing today to reform the European telecommunications markets. We want to create a new legal framework that attracts and enables investment in connectivity. Companies should be able to plan their investments in Europe over the next 20 years. Because if we invest in new networks and services, at least 1.3 million new jobs will be created over the next decade. Connectivity should benefit everyone. This is why today the Commission proposes to fully deploy 5G, the fifth generation of mobile communication systems, across the European Union by 2025. This can generate two million additional jobs in the EU. Since connectivity should benefit everyone, so it doesn't matter where you live or how much you earn. We are therefore now proposing to equip every village and every town in Europe with free wireless internet access around the main centers of public life by 2020. In the digital age, we must also empowering our artists and creators and protecting their works. Artists and creators are the jewels of Europe. Content creation is not a hobby. It's a job. And it is part of our European culture. I want journalists, editors and authors to be fairly compensated for their work, whether it is done in a studio or in a living room, broadcast offline or online, published via a photocopier or linked to a hyperlink on the Internet. This is precisely what the overhaul of European copyright rules that we are proposing today allows. Empowering our economy means investing in connectivity, but also in job creation. This is why Europe must resolutely invest in its youth, in its job seekers and in its start-ups. The EUR 315 billion Investment Plan for Europe, which we agreed together here just 12 months ago, has already mobilized EUR 116 billion of investment, from Latvia to in Luxembourg, in its first year of application. More than 200,000 small businesses and start-ups across Europe have obtained a loan. And more than 100,000 people have benefited from new employment. And this, thanks to the new European Fund for Strategic Investments which I proposed, which my Commission drew up, and which you here in the European Parliament supported and adopted in record time. And we will now go even further. Today, we are proposing to double the duration of the Fund and to double its financial capacity. With your support, we will ensure that our European Investment Fund provides total financing of at least €500 billion by 2020. And we will go beyond this target to reach €630 billion of by 2022. Of course, with the help of the Member States, we can get there even faster. In addition to efforts to attract private investment, we must also create the right environment for this investment. European banks are in much better shape than two years ago, thanks to our joint European efforts. And Europe needs its banks. But an economy almost totally dependent on bank credit is bad for financial stability. It's also bad for business, as we saw during the financial crisis. That is why it is now urgent to speed up our work on the Capital Markets Union. The Commission is presenting to you today a concrete roadmap in this direction. A Capital Markets Union will make our financial system more resilient. It will give companies easier access to more varied sources of financing. Imagine a Finnish startup that can't get a bank loan. Today, the options are very limited. The Capital Markets Union will offer alternative and vital sources of finance to help start-ups get started – business angels, venture capital, market finance. To cite just one example – almost a year ago we put on the table a proposal to facilitate the granting of bank loans. This proposal is likely to unlock up to €100 billion in additional funding for EU businesses. So please speed up its adoption. Our investment plan for Europe has worked better than anyone expected in Europe, and now we are going to open it up to the rest of the world. As many of you and Member States have requested. Today, we are launching an ambitious investment plan for Africa and neighboring countries, likely to mobilize 44 billion euros in investments. This is an amount that can go up to 88 billion euros if the Member States contribute to it. The logic is the proven one for the domestic investment plan: we will use public funds as collateral to attract public and private investment and create jobs. In this way, we will complement our development aid and tackle one of the root causes of migration. With economic growth at its lowest since 2003 in developing countries, this is absolutely necessary. The new plan will provide vital assistance to those who would otherwise be forced to embark on a perilous journey in the hope of a better life. We are investing to improve conditions abroad, yes, but we must also invest to respond to humanitarian crises at home. And more than anything, we need to invest in our youth. I cannot accept, and I will never accept, that Europe is and will remain the continent of youth unemployment. I cannot accept, and I will never accept, that millennials – millennials – are, for the first time in 70 years, becoming poorer than their parents. Of course, this responsibility lies primarily with national governments. But the European Union can support their efforts. VS' is what we are doing with the EU Youth Guarantee, launched three years ago. My Commission has made the Youth Guarantee more effective and accelerated its implementation. More than 9 million young people have already benefited from this programme. 9 million young people have found a job, a traineeship or an apprenticeship thanks to the European Union. And we will continue to roll out the Youth Guarantee across Europe; thus, we will improve the range of skills of Europeans and we will reach out to the regions and young people who need it most. We also do this with the Erasmus programs which 5 million students have already benefited from. Young people move, travel, work, study and train in countries across the Union thanks to Erasmus. And 1 out of 3 Erasmus+ students has been offered a job in the company in which they did their training. But we can do more. There are many young people who want to get involved in Europe; they are ready to make a significant contribution to society and show solidarity. We can empower them. The European Union can also help create more opportunities for young people. Europe has many young people who want to get involved, make a useful contribution to society and show their solidarity. Solidarity is the cement of our Union. The word 'solidarity' appears 16 times in the treaties that all our Member States have approved and ratified. Our European budget is concrete proof of financial solidarity. There is impressive solidarity when it comes to, for example, jointly applying European sanctions when Russia violates international law. The euro is the expression of solidarity. Our development policy is a strong sign of solidarity with the rest of the world. And, in the management of the refugee crisis, we are beginning to perceive a certain solidarity. I am convinced that much greater solidarity is needed. But I also know that solidarity is a voluntary act. It must come from the heart. It cannot be imposed. Often, we are more willing to show solidarity in emergency situations. When hills were burning in Portugal, it was Italian planes that put out the flames. When floods deprived of electricity part of Romania, light was restored using Swedish generators. When thousands of refugees landed on Greek beaches, they were sheltered in Slovak tents. It is in this same spirit that the Commission is now proposing to create a European Solidarity Corps. Young people across the EU will be able to offer their help where it is most needed, to respond to crisis situations, such as the refugee crisis or the recent earthquakes in Italy. I want this European Solidarity Corps to be operational before the end of the year. And I want to see the first 100,000 young volunteers at work by 2020. By voluntarily joining the European Solidarity Corps, these young people will be able to develop their skills, have a job and also live a human experience of great value. A EUROPE THAT DEFENDS A Europe that protects is a Europe that defends, both inside and outside its territory. We must defend ourselves against terrorism. Since the Madrid bombing in 2004, Europe has seen more than 30 terrorist attacks, including 14 in the past year. More than 600 innocent people lost their lives in cities like Paris, Brussels, Nice or Ansbach. Just as we stood together in bereavement, we must stand together in our response. These barbaric acts have shown us again what we are fighting for: for our European way of life. Faced with the worst that Man can do, we must remain faithful to our values, to ourselves. And what we are are democratic societies, plural, open and tolerant. But this tolerance cannot come at the expense of our security. This is why my Commission has prioritized security from day one: we have criminalized terrorism and the return of foreign fighters across the EU, we have taken strong action against the use of weapons to fire and the financing of terrorism, we have worked with internet companies to remove terrorist propaganda content from the web and we have fought against radicalization in schools and prisons in Europe. But there is still work. We need to know who crosses our borders. That is why we will defend our borders with the help of the new European Border and Coast Guard Agency, which is in the process of being formalized by the Parliament and the Council, just nine months after the Commission proposed its creation. Frontex already has over 600 officers stationed in Greece at the borders with Turkey and over 100 officers in Bulgaria. Now the EU institutions and the Member States should work very closely together to quickly contribute to the establishment of the new agency. I want to see the deployment, from October, of at least 200 border guards and 50 additional vehicles at Bulgaria's external borders. We will also defend our borders by strictly controlling all those who cross them, according to procedures which will be adopted by the end of the year. Each time a person enters the EU or leaves its territory, there will be a record of the date, place and reason. By November, we will propose a European Travel Information System, an automated system to determine who will be allowed to travel to Europe. This way, we will know who is traveling to Europe even before that person arrives. And we all need this information. How many times in recent months have we heard that the information existed in a database in one country, but never reached the authorities of another country when it could have changed the course of things? Border security also involves prioritizing the exchange of information and intelligence. To this end, We will strengthen Europol, our European agency supporting national law enforcement authorities, by giving it better access to databases and granting it additional resources. A counter-terrorism unit which currently has a staff of 60 cannot provide the necessary support 24 hours a day, 7 days a week. A Europe that protects must also defend our interests beyond our borders. The facts are very clear: the world is getting bigger. And we are getting smaller. Today, we Europeans represent 8% of the world's population — in 2050, we will only represent 5%. By then, you will not see a single EU member country among the world's leading economies. But what about the EU as a whole? We will still be at the top of the list. Our enemies would like us to separate. Our adversaries would profit from our division. It is only together that we are, and will remain, an inescapable force. Yet, while Europe prides itself on being a soft power of global importance, we must not be naïve. Soft power is not enough in an increasingly dangerous neighborhood. Take the example of the relentless conflict in Syria. Its consequences for Europe are immediate. These are attacks perpetrated in our cities by terrorists trained in Daesh camps. But where is the Union, where are its Member States, in the negotiations for a settlement of the conflict? Federica Mogherini, our High Representative and my Vice-President, is doing a fantastic job. But she must become our European Minister of Foreign Affairs, the one who will bring together all the diplomatic corps, both small and large countries, in order to be able to weigh in on international negotiations. This is why I am calling today for the development of a European strategy for Syria. Federica should have a seat at the table discussing the future of Syria. So that Europe can contribute to the reconstruction of a peaceful Syrian nation and a pluralist and tolerant civil society in Syria. Europe must assert itself more. This is particularly true for our defense policy. Europe can no longer afford to depend on the military power of other countries or to let France alone defend its honor in Mali. We must take responsibility for protecting our interests and our European way of life. Over the past ten years, we have participated in more than 30 EU civilian and military missions from Africa to Afghanistan. But without a permanent structure, we cannot act effectively. Urgent operations are delayed. We have separate headquarters for parallel missions, even when they take place in the same country or in the same city. It is time for us to have a single headquarters for these operations. We should also move towards common military resources which, in some cases, would belong to the Union. And, of course, in full complementarity with NATO. From an economic point of view, this clearly makes sense. The lack of defense cooperation costs Europe between 25 and 100 billion euros per year, depending on the areas concerned. We could use that money to accomplish so much more each year. We can achieve this. We are building up a multinational tanker fleet. Let's reproduce this example. To ensure the strength of European defence, the European defense industry must be innovative. This is why we will propose, before the end of the year, the creation of a European Defense Fund, to actively stimulate research and innovation. The Lisbon Treaty allows Member States who so wish to pool their defense capabilities in the form of permanent structured cooperation. I think the time has come to make use of this possibility. And I hope that our meeting at 27 in Bratislava in a few days will be the first political step in this direction. Because it is only if we all work together that Europe will be able to defend itself on its territory as well as outside. A EUROPE THAT TAKES ITS RESPONSIBILITIES The last point I want to raise with you concerns responsibility. We must take responsibility for building this Europe that protects. I call on all EU institutions and each of our Member States to take up this responsibility. We must put an end to the old refrain that success is national and failure European. Otherwise our common project will not survive. We must remember what our Union aspires to. I therefore call on each of the 27 leaders on their way to Bratislava to reflect on three reasons why we need the European Union. Three things to defend for which they are ready to take responsibility. And that they are ready to realize quickly. The delay in keeping the promises made is a phenomenon which risks increasingly undermining the credibility of the Union. Take the Paris agreement. We Europeans are the world leaders in climate action. It's' Europe which led the negotiations for the first legally binding climate agreement ever concluded at the global level. It was Europe that formed the coalition of ambition that made the Paris agreement possible. Yet Europe is struggling today to show the way and to be among the first to ratify our agreement. Only France, Austria and Hungary have ratified it at this stage. I therefore call on all Member States, as well as this Parliament, to play their part in the coming weeks, not in the coming months. We should be faster. Let's now ratify the agreement today to show the way and be among the first to ratify our agreement. Only France, Austria and Hungary have ratified it at this stage. I therefore call on all Member States, as well as this Parliament, to play their part in the coming weeks, not in the coming months. We should be faster. Let's now ratify the agreement today to show the way and be among the first to ratify our agreement. Only France, Austria and Hungary have ratified it at this stage. I therefore call on all Member States, as well as this Parliament, to play their part in the coming weeks, not in the coming months. We should be faster. Let's now ratify the agreementfrom Paris. It's possible. It is a question of political will. And influence of Europe in the world. The European institutions must also assume their responsibilities. I have asked each of my Commissioners to be prepared to debate, over the next two weeks, the state of our Union in the national parliaments of the countries that each of them knows best. Since the start of my mandate, my commissioners have visited national parliaments more than 350 times. And I want them to do it even more now. Because Europe can only be built with the Member States, never against them. We must also take our responsibilities by recognizing that certain decisions are not ours to make. It is not fair, when EU countries cannot agree on whether or not to ban the use of glyphosate in herbicides, that the Parliament or the Council force the Commission to take a decision. So we're going to change those rules – because that's not democracy. The Commission must take responsibility for being political, not technocratic. A political Commission is a Commission that listens to the European Parliament, listens to all the Member States, and listens to the citizens. And it was our listening that motivated my Commission to withdraw 100 proposals during the first two years of our mandate, to reduce by 80% the number of initiatives presented compared to the previous 5 years, and to launch an in-depth review of the' all the legislation in force. Because only by targeting areas where Europe can add real value, and deliver results, will we be able to make Europe a better and more trustworthy place. Being political also means correcting technocratic errors as soon as they occur. The Commission, Parliament and Council have jointly decided to abolish roaming charges for mobile phones. This is a promise we will keep. Not just for people going on a two-day business trip. Not just for vacationers who are going to spend two weeks in the sun. But also for our cross-border workers. And for the millions Erasmus students who stay one or two semesters abroad for their studies. This is how I withdrew a project written this summer. This project started with a good intention. He was technically correct. But it did not match the promises that had been made. And next week you will see a new, much better project. When you travel in the European Union with your mobile phone, it should be like staying at home. Being political is also what allows us to implement the Stability and Growth Pact with common sense. The pact was created based on the theory. Many have begun to apply it as a doctrine. And today some have made it a dogma. In theory, the debt of a country is punishable if it exceeds 60 percent of a single decimal place. But in reality, we must examine the reasons for this debt. We should try to support ongoing reform efforts, not punish them. For this we need responsible politicians. And we will continue to apply the pact not dogmatically, but with common sense and with the flexibility that we have had the wisdom to build into the rules. Finally, taking our responsibilities also means answering for our actions before the voters. This is why we are going to propose to change the absurd rule obliging the commissioners to give up their functions if they want to stand in the European elections. The German Chancellor, the Czech, Danish or Estonian Prime Minister do not leave their post when they stand for re-election. Commissioners shouldn't either. If we want a Commission that meets real-world expectations, we should encourage Commissioners to make a proper appointment with democracy. And not prevent it. CONCLUSION Ladies and Gentlemen Members of the European Parliament, I am as young as the European project which will celebrate its 60th anniversary next year, in March 2017. I have lived it, I have devoted myself to it, all my life. My father believed in Europe because he believed in stability, workers' rights and social progress. Because he understood how precious – and fragile – peace in Europe was. I believe in Europe because my father instilled these same values in me. But what are we passing on to our children right now? What are we going to leave them as a legacy? A Union unraveling in disunity? A Union that has forgotten its past and has no vision for the future? Our children deserve better. They deserve a Europe that preserves their way of life. They deserve a Europe that empowers them and defends them. They deserve a Europe that protects. It is time for us – the institutions, the governments, the citizens – to all take responsibility for building this Europe. Whole. Mr. President, Ladies and Gentlemen, Members of the European Parliament, When I appeared before you last year at the same time, my task was, in a way, easier. It was clear to everyone that the state of our Union was worrying to say the least. Europe was counting its wounds and scratches, after a year that had shaken it to its foundations. We had only two choices. Either unite around a positive European program or withdraw into each other, ignoring the others. Faced with this choice, I pleaded for unity. I have put forward a positive agenda to, as I said last year, help create a Europe that protects, a Europe that empowers, a Europe that defends. Over the past twelve months, the European Parliament has helped bring this program to life. With each passing day, we continue to make progress. Just last night, you have again worked on an agreement on trade defense instruments and the doubling of our European investment capacity. And you made it. Thank you. I would also like to thank the 27 leaders of our Member States. A few days after my speech last year, they approved my program at their summit in Bratislava. They thus chose unity. They have chosen to unite around our common interests. Together, we have shown that Europe can deliver concrete results for its citizens, when and where it is needed. Since then, we have made sometimes slow but irreversible progress. The improved economic outlook worked in our favour. We are now entering the fifth year of an economic recovery which is really being felt in each of the Member States. In the past two years, growth has been stronger in the European Union than in the United States. It now amounts to more than 2% for the entire Union and 2.2% for the monetary zone. Unemployment is at its lowest in nine years. Since the beginning of our mandate, nearly 8 million jobs have been created. And the employment rate in the European Union is higher than it has ever been. We have 235 million people who have a job. The European Commission cannot claim all the credit for this alone. That said, I'm sure that if 8 million jobs had been lost, a lot of it would have been our fault. In reality the institutions of the Europe have played their part in helping to turn the tide. We can take credit for our Investment Plan for Europe, which has generated €225 billion of investment so far. It has provided loans to 450,000 small businesses and over 270 infrastructure projects. We can take credit for determined action, which has given Europe's banks the financial firepower to lend to businesses and enable them to grow and create jobs. And we had the merit of having contributed to the fall in public deficits, which went from a level of 6.6% to a level of 1.6%. We owe it to an intelligent application of the Stability and Growth Pact. We demand budgetary discipline but we ensure that it does not harm growth. It actually works very well throughout the European Union despite criticism. Ten years after the onset of the crisis, Europe is finally experiencing an economic rebound. And with it, a boost of confidence. Our 27 leaders, the Parliament and the Commission are putting the European project back at the heart of our Union. Last year, in Rome, we saw the 27 leaders climb Capitoline Hill one by one to renew their vows of commitment to each other and to the Union. All this leads me to believe: Europe is on the rise again. New opportunities are opening up to us, but they won't stay open forever. Let's take advantage of this momentum, let's take advantage of these favorable winds. And for that we have to do two things: First, we have to stick to the course set last year. We still have 16 months left in which Parliament, the Council and the Commission can make real progress. We must use this time to finish what we started in Bratislava, and implement our own constructive programme. Second, we must set ourselves an ambitious goal for the future. As Mark Twain wrote (I quote), as the years pass, we will be more disappointed by the things we didn't do than by the ones we did. The time has come to build a more united, stronger, more democratic Europe by 2025. STAYING THE COURSE Mr President, ladies and gentlemen, As we look to the future, we cannot allow ourselves to be deviated from our course. Together, we have set ourselves the goal of completing an Energy Union, a Security Union, a Capital Markets Union, a Banking Union and a Digital Single Market. Together, we have already come a long way. As confirmed by Parliament, the Commission has already presented 80% of the proposals promised at the start of its mandate. We must now work together to turn these proposals into legislative acts, and to turn these acts into practice. As always, some concessions will have to be made. The proposals presented by the Commission to reform our common asylum system or to establish new, stronger rules on the posting of workers are, I know, controversial subjects. We will get good results if everyone builds their part of the bridge so that the positions can come together. And I would like to say that the Commission will be open to compromise, as long as the end result is good for the Union and fair for all its Member States. We are now ready to submit the remaining 20% of initiatives by May 2018. This morning, I addressed the Speaker of Parliament and the Prime Minister of Estonia, whose strong action I would like to commend here in the process of deploying, as far as Europe is concerned, a letter of intent specifying the priorities for the coming year. I will not and cannot enumerate here all these proposals, but allow me to mention five which are particularly important. First of all, I would like us to further strengthen our European trade agenda. Europe is open to trade, yes. But reciprocity there must be. We will have to get as much as we give. Trade is not an abstract concept. Trade is jobs, it is new opportunities for European companies, big or small. Each billion more exports represents 14,000 additional jobs in Europe. Trade is the export of our social and environmental standards, and our data protection or food safety standards. Europe has always been an attractive economic area. But since last year, I observes that our partners from all over the world are rushing to our door to conclude commercial agreements with us. Thanks to the help of your Parliament, we have just concluded a trade agreement with Canada which will apply on a provisional basis from next week. We have reached a political agreement with Japan on a future economic partnership. And, by the end of the year, we have a good chance of doing the same with Mexico and South American countries. Today we are proposing to open trade negotiations with Australia and New Zealand. I would like all these agreements to be finalized by the end of this mandate. And I want them to be negotiated with the greatest transparency. L' openness to trade must go hand in hand with increased transparency in our decision-making processes. The European Parliament will have the final say on all trade agreements. Therefore, its members as well as national and regional parliaments must be kept fully informed from day one of the negotiations. The Commission will ensure this. From now on, the Commission will publish all the draft negotiation mandates that it will present to the Council. Citizens have the right to know what the Commission is proposing. No more lack of transparency, no more rumors and claims of intent to which the Commission continues to be subject. I invite the Council to do the same. I would like to say once and for all: we are not naïve supporters of free trade. L' Europe must always defend its strategic interests. This is why we are now proposing a new EU framework on investment screening. If a foreign public company wants to acquire a strategic European port, part of our energy infrastructure or one of our defense technology companies, this can only be done transparently, through careful consideration and debate. It is our political responsibility to know what is happening at home in order to be able, if need be, to protect our collective security. Secondly, the Commission would like to make our industry stronger and more competitive. VS' is particularly true with regard to our industrial base and the 32 million workers who form its backbone. They are the ones who manufacture the very first class products our cars, for example to which we owe our advance compared to others. I am proud of our auto industry. But I am shocked when customers and consumers are knowingly and intentionally deceived. I invite the auto industry to make amends and correct the situation. Instead of trying to deceive and mislead, manufacturers should invest in the clean cars of tomorrow. We present, ladies and gentlemen, today today a new industrial strategy that will allow our industry to remain or become the number one in terms of innovation, digitization and decarbonisation. Thirdly, I would like Europe to be at the forefront of the fight against climate change. Last year, we set global climate standards with the ratification of the Paris agreement right here in this chamber. Faced with the collapse of the ambitions shown by the United States, Europe must make sure to make the planet great, which is the indivisible homeland of all humanity. The Commission will shortly present a proposal to reduce carbon emissions in the transport sector. And fourth: I would like us to better protect Europeans in the digital age. Over the past few years, we have made significant progress in securing the internet. New rules, proposed by the Commission, will protect our intellectual property rights, our cultural diversity and our personal data. We have intensified the fight against terrorist propaganda and radicalization online. But Europe remains ill-equipped in the face of cyberattacks. Cyberattacks are sometimes more dangerous to the stability of democracies and economies than guns and tanks. Last year alone, there were over 4,000 ransomware attacks recorded and 80% of European businesses experienced at least one cybersecurity incident. Cyberattacks know no borders; they spare no one. VS' This is why the Commission is now proposing new tools, including a European Cybersecurity Agency, to better defend us against these attacks. Fifth: migration must stay on our radar. Even if the issues revolving around migration have often given rise to debate and controversy, we have managed to make real progress on many fronts. Today, we protect our external borders more effectively. More than 1,700 officers from the new Border and Coast Guard now support the 100,000 national border guards of the Member States and patrol in particular Greece, Italy, Bulgaria and Spain. We have common borders but the States which are in the front line because of their geographical situation should not be solely responsible for their protection. Common borders and common protection must go together. We have succeeded in stemming the flow of irregular migrants, a source of great concern in many countries. We have reduced the number of irregular arrivals in the Eastern Mediterranean by 97% thanks to the agreement we have concluded with Turkey. And, this summer, we managed to better control the central Mediterranean route: arrivals there fell by 81% in August compared to the same month last year. In this way, we have considerably reduced the number of human lives lost in the Mediterranean. I cannot talk about migration without paying strong tribute to Italy for its perseverance and generosity. During the summer months, the Commission has worked in harmony with the Italian Prime Minister, my friend Paolo Gentiloni, and his government. We have done it and we will continue to do it because, in the Mediterranean, Italy saves the honor of Europe. We also urgently need to improve the living conditions of refugees in Libya. I am appalled by the inhuman conditions that prevail in detention or reception centres. Here, Europe has a responsibility, but a collective responsibility, and the Commission will act together with the United Nations to put an end to this scandalous situation which cannot last. Even if it saddened to see that not all our Member States show the same degree of solidarity, Europe as a whole has continued to show solidarity. Last year alone, our Member States granted asylum to more than 720,000 refugees, or provided for their resettlement. That's three times more than Australia, Canada and the United States combined. Europe, contrary to what is said, is not a fortress and must never become one. Europe is and will remain the continent of solidarity where those who are prosecuted for unacceptable reasons must be able to find refuge. I am particularly proud of the young Europeans who volunteer to give language lessons to Syrian refugees or of all those young people who, by the thousands, put themselves at the service of our new European Solidarity Corps. These young people give life and color to European solidarity. But we must redouble our efforts. At the end of the month, the Commission will present a new set of proposals focusing on returns, solidarity with Africa and opening legal channels for migration. With regard more particularly to returns, I would like to repeat that people who are not entitled to stay in Europe must return to their country of origin. While only 36% of migrants in an irregular situation are returned, it is clear that we must considerably intensify our effort and our action in this area. Only in this way will Europe be able to show solidarity with the regard to refugees who genuinely need protection. Solidarity cannot be an exclusively intra-European affair. It is also a question of establishing greater solidarity with Africa: Africa, cradle of humanity, noble continent, young continent. Our €2.7 billion Africa Trust Fund opens job opportunities across the African continent. But while the EU budget has provided the bulk of the funding, the contribution from all our Member States combined is only €150 million. The fund is now reaching its limits. We know or we should know the risks of a shortage of funding: in 2015, many migrants wanted to join the Europe when and because UN World Food Program funds ran out. I therefore call on Member States to walk the talk and ensure that the Africa Trust Fund does not suffer the same fate. The risk is great. We will also work to open up legal channels for migration. Irregular migration will only stop when migrants have an option but to undertake a perilous journey. We are about to resettle 22,000 refugees from Turkey, Jordan and Lebanon and I join the call made by the United Nations High Commissioner for Refugees to resettle another 40,000 refugees from Libya and the countries neighbors. For the rest, Europe is an aging continent, all the more reason to provide it with a legal migration system which is an unavoidable necessity. This is why the Commission has made proposals to facilitate access for migrants to the European Blue Card, and I thank Parliament for its support in this regard. LET'S RAISE THE SAILS Mr President, Ladies and Gentlemen, Honorable Members of Parliament, I have mentioned just a few of the initiatives that we want and need to put in place over the next sixteen months. But that will not be enough to win back the hearts and minds of Europeans. We must now set a course for the future. In March, the Commission presented its White Paper on the future of Europe, which sets out in five scenarios the face that Europe could take by 2025. These scenarios have been debated, sometimes superficially, sometimes fiercely. They have been analyzed and sometimes even completely dissected. I welcome that because that was exactly the goal. I wanted to launch a process that would allow Europeans to determine their own path for the future. The future of Europe cannot be dictated by its leaders alone. It can only be the culmination of a democratic debate leading to a broad consensus. This assembly has actively contributed to this with its three ambitious resolutions on the future of Europe, for which I particularly thank the rapporteurs. My thanks also go to all the colleagues who have participated in the more than 2,000 public events that the Commission has organized since March across Europe. The time has come to draw the first conclusions from this debate. The time has come to take the next step: to move from reflection to action, from debate to decision. Today I would like to present to you my vision of things: my personal “sixth scenario”, if you will. This scenario is the result of decades of personal experience. All my life I have lived, fought and worked for the European project. I have been a witness and actor of good and bad times. I have occupied many seats around the negotiating table: as minister, prime minister, president of the Eurogroup, and now President of the Commission. I was there, in Maastricht, Amsterdam, Nice and Lisbon, when our Union was evolving and expanding. I have always fought for Europe. I have sometimes suffered because of Europe. And even desperate for Europe. With the European Union, I also went through ups and downs, but I never lost this love for Europe. Because, it is well known, there is no love without disappointment, at least very rarely. So you have to love Europe, because in this troubled world, Europe and the European Union have achieved a unique performance, imposing peace within and peace outside its borders. And prosperity if not for all, at least for many. We should meditate on this at the occasion of the European Year of Cultural Heritage, which in 2018 should celebrate our cultural diversity. A UNION OF VALUES Being attached to the same values gives us a feeling of belonging. For me, Europe is a bigger project than the single market, than the currency, than the euro. It has always been a question of values. This is why my sixth scenario is based on three pillars, three unshakeable principles: freedom, equality and the rule of law. Europe is first and foremost a union of freedom. Freedom in the face of oppression and dictatorship that our continent, especially the countries of central and eastern Europe, have unfortunately known too well. I mean the freedom to make your voice heard, as a citizen and as a journalist, this freedom which we all too often think is obvious. These are the values on which our Union was built. But freedom does not fall from the sky. We must fight for it to triumph. In Europe and worldwide. Secondly, Europe must be a union of equality and a union of equals. This means equality between its members, large or small, East or West, North or South. Europe extends from Vigo to Varna, from Spain to Bulgaria. Europe must breathe with its two lungs, with that of the east and with that of the west. Otherwise our continent is running out of steam. In a Union where all are equal, there can be no second-class citizens. It is unacceptable that in 2017, children are still dying from diseases that should have been eradicated long ago in Europe. Children from Romania or Italy should have the same access to measles vaccines as children from other European countries. No ifs or buts that hold. This is why we are working with all Member States to support their national vaccination efforts. In Europe we cannot accept deaths when they can be avoided. In a Union where all are equal, there can be no second-class workers. Those who do the same work, in the same place, should receive the same salary. The Commission's proposals on the posting of workers aim to achieve this objective. We should make sure that all the rules of the on labor mobility are implemented in a fair, simple and effective way by a new European inspection and enforcement body. It is absurd to have a Banking Authority to enforce banking standards, but not a Common Labor Authority to ensure fairness in our single market. We will create such an authority. In a Union where all are equal, there cannot be second-class consumers either. I cannot accept that in certain parts of Europe, in Central and Eastern Europe, people are offered lower quality food products than in other countries, under identical brands and packaging. Slovaks don't deserve have less fish in their breaded fish, the Hungarians less meat in their meals, or the Czechs less cocoa in their chocolate. EU rules already prohibit such practices. We still have to strengthen the means available to the national authorities to repress these illegal practices wherever they occur. Third: In Europe, the force of law has replaced the rule of the strongest. This means that the rule of law is guaranteed by an independent judiciary. Belonging to a Union based on the rule of law means knowing how to accept and respect a judgement. Our Member States have granted the Court of Justice of the European Union jurisdiction to rule in the last instance. The judgments of the European Court of Justice must therefore be respected in all cases. Failure to do so, or undermining the independence of national courts, is tantamount to dispossessing citizens of their fundamental rights. The rule of law is not an option in the European Union. It is an obligation. Our Union is not a State but it must be a community of law. A MORE UNITED UNION These three principles – freedom, equality and the rule of law – must remain the foundations on which we will build a stronger, more united and more democratic Union. When we talk about the future, I know from experience that new treaties and new institutions are not the expected answers. These are just means to an end – no more, no less. new treaties, new institutions speak to us here; in Strasbourg or Brussels. Elsewhere, they don't mean much. Institutional reforms only interest me if they contribute to making our European Union more effective. Instead of rushing headlong into future treaty changes, which will have to come sooner or later, we should first get rid of the idea that we can only win if others lose . Democracy is a matter of compromise. And with the right compromises, everyone wins in the long run. In the European Union, compromises are neither negative nor defamatory; on the contrary, they make it possible to bridge and reconcile differences. He who is not able to compromise does not is not ripe for democracy or for Europe. To strengthen its unity, the European Union must also become more inclusive. If we want to protect our external borders and rightly strengthen them even further, we must let Bulgaria and Romania join the Schengen area immediately. We should also allow Croatia to become a full member, a once all criteria are met. If we want the euro to unite our continent rather than divide it, it must be more than the currency of the few. The euro is intended to become the single currency of the entire European Union. All but two of our Member States have the right and the obligation to adopt the euro as soon as they fulfill the conditions. Member States that want to join the euro zone must also have the capacity to do so. This is why I propose the creation of an instrument for accession to the euro, offering technical and sometimes financial pre-accession assistance. If we want banks to be subject to the same rules and supervision across our continent, we must encourage all Member States to join the banking union. To do this, we need to reduce the risks that still exist in the banking systems of some of our Member States. The banking union can only work if the reduction and sharing of these risks go hand in hand. To achieve this, as everyone knows, certain preconditions must be fulfilled, as the Commission proposed in November 2015. There can only be a common deposit guarantee once everyone has gotten their act together at the national level. And if we want to put an end to fragmentation and social dumping in Europe, the Member States will have to agree on the European pillar of social rights as soon as possible, and at the latest at the Gothenburg summit in November. National social systems will remain diverse and distinct for a long time to come. But we should at least agree on a European union of social standards, to determine together what is fair and unfair in our internal market. I remain convinced: if Europe wants to succeed, it cannot neglect its workers. Ladies and gentlemen, if we want more stability in our neighbourhood, we must also offer credible enlargement prospects to the Western Balkans. There will be no new member countries during the term of this Commission and this Parliament, because the membership criteria have not been met. But in the years to come the European Union will have more than 27 members. For all candidate countries, absolute priority must be given, in the negotiations, to respect for the rule of law, justice and fundamental rights. This rules out Turkey's EU membership in the near future. Turkey has for some time been moving away from the European Union by leaps and bounds. The place of journalists is in the newsrooms, where freedom of expression reigns. Their place is not in prisons. I appeal to the Turkish authorities: release the journalists, not just ours. Stop insulting our Member States and our heads of state and government by calling them fascists or Nazis. Europe is a continent made up of mature democracies. But whoever deliberately offends closes the road to our Union. I sometimes have the feeling that Turkey is trying to close this path in order to then blame the European Union for the failure of the accession negotiations. On our side, we will always keep our hand outstretched towards the great Turkish people and all those who are willing to cooperate with us on the basis of our values. A STRONGER UNION Ladies and Gentlemen, I want our Union to be stronger, which presupposes a stronger internal market. I would like decisions on important questions concerning this market to be taken more often and more easily in the Council by qualified majority with equal participation of the European Parliament. It is not necessary to change the Treaties for this. There are so-called 'passerelle' clauses in the current treaties which allow us to switch to qualified majority voting instead of unanimity in certain cases, provided that the European Council decides unanimously. I am of the opinion that we should introduce qualified majority voting on decisions concerning the Common Consolidated Corporate Tax Base, VAT, fair taxation for the digital industry and financial transaction tax. Europe must be able to decide more quickly and more efficiently, and this also applies to Economic and Monetary Union. The euro zone is now more robust than it has ever been. In particular, we have created a European Stability Mechanism (ESM). I believe that the ESM should now evolve gradually into a European Monetary Fund, which must however be firmly anchored in the rules and competences of the European Union. The Commission will make concrete proposals to this effect in December. We need a European Minister of Economy and Finance, who encourages and supports structural reforms in our Member States. It will be able to draw on the work carried out by the Commission since 2015 as part of its structural reform support service. This European Minister for the Economy and Finance should coordinate all of the EU's financial instruments if a Member State enters a recession or is hit by a crisis threatening its economy. I am not pleading for the creation of a new function. For reasons of efficiency, I plead for this task to be entrusted to the European Commissioner in charge of the economy and finance – ideally Vice-President of the European Commission – and President of the Eurogroup. This European Minister for the Economy and Finance will obviously be responsible to this European Parliament. We don't need parallel structures. Therefore, we do not need a separate euro budget, but a substantial budget line dedicated to euro zone under our EU budget. I have no sympathy for the idea of a specific Eurozone Parliament. The Eurozone Parliament is the European Parliament. The European Union must also be stronger in the fight against terrorism. Over the past three years, we have made progress, but we are not reacting quickly enough to cross-border terrorist threats. I plead for the creation of a European intelligence cell responsible for ensuring that data relating to terrorists and foreign fighters is automatically exchanged between the intelligence services and the police. Likewise, it seems to me entirely appropriate to instruct the new European Public Prosecutor's Office to prosecute the perpetrators of cross-border terrorist offences. L' European Union must also have more weight on the international scene. And to do this, it must be able to take foreign policy decisions more quickly. I would like the Member States to examine which foreign policy decisions could no longer be adopted unanimously, but by qualified majority. The Treaty allows this, if the European Council decides unanimously. To work effectively, we need decisions taken by qualified majority in the field of foreign policy. In terms of defence, additional efforts are needed. The creation of a European Defense Fund is on the agenda. Permanent structured cooperation in the field of defense is on the right track. By 2025, we should have a European operational defense union. We need it. And NATO is in favor of it. Finally, and in line with the efforts made by the Commission in recent years, I would like our Union to focus more on what really matters. We must not annoy European citizens with regulations that govern the smallest details of their lives. We should be visible on the big issues. We must not constantly propose new initiatives or seek to assume ever greater powers. We should hand over competences to the Member States in areas where it makes sense. This is why this Commission has endeavored to be more ambitious on the major issues, and more discreet on less important issues. It has thus proposed less than 25 new initiatives per year, whereas previous Commissions presented well over 100. In order to bring the work we have started to a successful conclusion, we are going to create a task force "Subsidiarity and proportionality" to take a closer look at all our policies, so that Europe only acts where it has real added value. The first vice-president, my friend Frans Timmermans, who has already put all his energy into 'better regulation', will chair this task force. This Timmermans taskforce should include members of the European Parliament as well as national parliaments. It should submit a report on its work within a year. A MORE DEMOCRATIC UNION Mr President, Ladies and Gentlemen, Our Union needs a democratic leap forward. I would like European political parties to launch their campaigns for the next European elections earlier than in the past. Too often, European election campaigns have been reduced to a simple addition of national electoral proposals. European democracy deserves better. Today the Commission is proposing new rules on the financing of political parties and foundations. It is a question of not bailing out the coffers of the extremists who are against Europe. It is a question of allowing the European parties to better be able to articulate themselves. I am aware that the idea is contested by more than a few, but I must tell you that I have sympathy for presenting transnational lists in the European elections. And I I will try to convince the chairman of my parliamentary group to follow me in this ambition, which adds democracy and clarity to Europe. I also believe that over the next few months we should involve national parliaments and civil society at national, regional and local level in the work on the future of Europe. Over the past three years, as we promised, Members of the Commission have visited national parliaments more than 650 times. They participated in over 300 Citizens' Dialogues in over 80 cities in 27 Member States. This is why I support President Macron's idea of organizing democratic conventions throughout Europe in 2018. As the debate develops, I I will pay particular attention to Estonia, Latvia, Lithuania and Romania. 2018 is the year in which these four countries will celebrate their 100th anniversary. Those who have the ambition to shape the future of our continent must know and honor our common history and therefore the history of the four countries mentioned, countries without which the European Union would not be complete. The need to strengthen democracy and transparency also has consequences for the European Commission. Today, I am transmitting to the European Parliament a new code of conduct for Commissioners. First of all, this new code specifies that the commissioners can present themselves under normal conditions as candidates in the European elections. It is clear that the new code will reinforce the obligations of the commissioners with regard to integrity, during and after their term of office. Anyone who wants to strengthen European democracy cannot accept that the small democratic progress constituted by the innovation of the heads of the list – 'Spitzenkandidaten' – will not be renewed. I would like the experiment to continue. More democracy means more efficiency. European efficiency would gain strength if we could merge the presidencies of the European Council and the European Commission. This proposal is in no way aimed at my excellent friend Donald, with whom I have been working harmoniously and in intimate complicity since the beginning of our mandate. This proposal is not aimed at Donald or myself. The European landscape would simply be more legible and more comprehensible if the European ship were piloted by a single captain. Having a single President would better reflect the true nature of our European Union, both as a Union of States and as a Union of Citizens. OUR ROADMAP Dear Colleagues, The vision of a more united, stronger and more democratic Europe that I am presenting today combines elements of all the scenarios that I presented to you last March. But our future cannot remain a simple scenario, a sketch, an idea among others. It is today that we must prepare the Union of tomorrow. I sent this morning to President Tajani, President Tusk and future rotating Council presidencies by March 2019, a roadmap indicating the direction we should follow. Important in this respect are the budgetary proposals that the Commission will present in May 2018. Here again, we have a choice: either we confine the ambitions of the European Union within the strict framework of the current budget or we increase the budgetary capacity of the European Union so that it can better meet its ambitions. I am for the second solution. On March 29, 2019, the United Kingdom will leave the European Union. It will be both a sad and tragic moment. We will always regret it. But we must respect the will of the British people. But we are going to move forward, we are going to move forward because Brexit is not everything, because Brexit is not the future of Europe. On March 30, 2019, we will be a Union of 27. I suggest that we prepare well for this. Elections to the European Parliament will take place just a few weeks later, in May 2019. This will be an important appointment with European democracy. European citizens will have to go to the polls with a clear vision of how the European Union will develop in the years to come. This is why I call on President Tusk and Romania, which will hold the presidency during the first half of 2019, to organize a special summit in Romania on March 30, 2019. My wish would be for this summit to be held in the beautiful city of Sibiu, also known as Hermannstadt. This should be the time to come together to take the decisions needed to build a more united Europe, stronger and more democratic. My hope is that, on March 30, 2019, Europeans will wake up in a Union where we defend all our values. Where all Member States will respect the rule of law without nuance. Where being a full member of the euro zone, the banking union, and the Schengen area has become the norm for everyone. Where we will have consolidated the foundations of our Economic and Monetary Union so that we can defend our single currency in all circumstances, good or bad, without having to resort to outside help. Where our single market will be fairer for workers from east and west. I would like Europeans to be able to wake up in a Europe where we have succeeded in agreeing on a solid base of social standards. Where profits will be taxed where they are made. Where terrorists will find no loopholes to exploit. And where we will have agreed on the creation of a real European defense union. Where a single president will ultimately lead the work of the Commission and the European Council, having been elected following a democratic pan-European electoral campaign. Mr President, if, on 30 March 2019, our citizens wake up in this Union, the European Union will be a union which will have met their justified expectations. CONCLUSION Ladies and gentlemen deputies, Helmut Kohl and Jacques Delors, whom I had the honor of knowing, taught me that Europe only advances when it is bold. The single market, the Schengen area, the single currency: here are ideas and projects which were considered, when they were born, as simple ideas of mind. However, today these three major achievements are part of our daily lives. Now that Europe is better, I am told not to overload the European boat. But we must not, at this time, err on the side of caution. We are repairing the roof of Europe. But, today and tomorrow, we must patiently, floor by floor, moment by moment, inspiration after inspiration, continue to add new floors to the Europe house. We must complete the Europe house, now that the weather is fine, and as long as the weather is fine. Because, when the clouds form on the horizon – and they will form one day – it will have been too late. So, let's cast off the moorings. 'Leinen los', as the Germans say Let's set sail. And let's take advantage of the favorable winds. Thank you for your attention Mr President, Mr Chancellor, The European Union is at a crossroads. A little more than 250 days separate us from the elections to the European Parliament which will take place from May 23 to 26, 2019, the main exercise in democracy on the scale of our continent. Thanks to our joint efforts over the past few years, the financial and economic crisis is now behind us. Ten years after the bankruptcy of Lehman Brothers, the European Union is now experiencing its 21st consecutive quarter of growth, and unemployment has returned to pre-crisis levels, although it is still too high in several Member States. However, Although the European Union has overcome the financial and economic consequences of the crisis, our societies and our democracies still bear the scars. Moreover, in an increasingly unstable global context, working for a European Union that protects, empowers and defends its citizens is, more than ever, a necessity. We cannot therefore allow ourselves any respite in the construction of a more united, stronger and more democratic Europe. We need to work extra hard in the coming months and throughout 2019 to progress on our roadmap for Sibiu, which has received the full support of the European Parliament and has been included in the Leaders' Agenda. We must now focus our efforts on three aspects: honoring our commitments; overcoming the difficulties that still hold us back; and give the European Union a perspective for the future. The essential priority for the three institutions, European Parliament, Council and Commission, is to quickly reach agreement on the legislative proposals under consideration, and this in sufficient time before the elections to the European Parliament. These proposals correspond to the 10 priorities of our agenda for jobs, growth, fairness and democratic change adopted in July 2014, based on the strategic agenda for the Union in times of change adopted by the European Council, which has been the subject of lively discussions with the political groups within the European Parliament and which has gradually grown since then. The Commission has delivered all the legislative proposals it had undertaken to draw up concerning the 10 priorities. Together, we have reached agreement on 50% of these proposals and the legislative process is well advanced for another 20% of them. It is essential that we honor our common commitments before the European elections, in particular with regard to the completion of the single market (including its reinforced social dimension), the digital single market, the energy union with a future climate policy, the banking union, the capital markets union and the security union. The Commission will mobilize its resources to support you every step of the way and we will ensure that Commissioners are present at trialogues whenever possible. To enable the European Parliament and the Council to focus their work entirely on what has already been submitted to them, the Commission is only presenting a very limited number of new proposals today. These final proposals of our mandate aim to strengthen, complete or adapt areas on which we have already begun to work. Given their obvious European added value, we are convinced that they will find the necessary support within the European Parliament and the Council, and can therefore be adopted quickly. In addition, there are still several important outstanding issues that we must collectively and resolutely address. Despite the differences of opinion, we must complete the work undertaken in the field of migration in order to ensure, as soon as possible, the proper functioning of the Common European Asylum System in accordance with the principles of responsibility and solidarity. Strengthening our Economic and Monetary Union also requires concrete measures. These measures will contribute to increasing our resilience within the European Union, and will indirectly strengthen the international role of the euro. In the face of growing tensions in the global trading system, we need to find solutions that preserve and strengthen the rules-based international system, at the heart of which the European Union intends to remain; the rapid ratification of the Economic Partnership Agreement between the EU and Japan will be a very strong signal of this commitment. Furthermore, we have to deal with the repeated attacks on the rule of law in certain Member States. Last but not least: we want to reach an agreement with the United Kingdom in order to organize its orderly withdrawal from the Union on 29 March 2019, while offering the clear prospect of a close partnership with a country which will always be our neighbor and close ally. To give the European Union a perspective for the future, we need to prepare carefully for the summit to be held in Sibiu on 9 May 2019. The Sibiu summit will take place six weeks after Brexit, and two weeks before the elections in European Parliament. This will therefore be a decisive moment for EU leaders to renew confidence in the future of a new Union of 27. It is with this in mind that the Commission presented, last May , a modern, fair and balanced proposal for the multiannual financial framework of the future Union of 27. We are proposing a simpler, more rational and more flexible budget which reflects the political priorities enshrined in the Bratislava roadmap and the Rome declaration. A political agreement on the overall framework before the European elections will constitute a strong statement of intent. The Commission will also present an initiative to strengthen the international role of the euro, to ensure that it fulfills the protective and unifying mission for which it was designed and to ensure that our single currency has a more firm and consistent on the world stage. To make the Union an effective and sovereign actor at international level, we must also equip our common foreign and security policy with the right decision-making tools. This is why the Commission is today proposing to make more frequent use of qualified majority voting in several targeted areas of the Union's external action. Initiatives aimed at giving the European Union a perspective for the future include further work on the future of our climate and energy policies and a new step in consolidating mechanisms to protect and to defend the rule of law in all our Member States. The following list details the proposals under consideration that should be adopted quickly, as well as the new and complementary initiatives that are presented alongside or will follow up the State of the Union address in 2018. As in the past, these initiatives are grouped under the 10 priorities of our common agenda. Key initiatives Priority 1: A new impetus for jobs, growth and investment 4 Initiatives to be adopted before the European Parliament elections Agreement in principle at the Sibiu summit of 9 May 2019 on the package proposal on the future post-2020 multiannual financial framework, and the greatest possible advances and, if possible, agreement of the co-legislators on the proposals for the next generation of programmes. Adoption by the co-legislators of the proposals of the “circular economy” package relating to the reduction of the impact of certain plastic products on the environment; reuse of wastewater; and drinking water. Adoption by the co-legislators of the proposal on accessibility requirements for certain products and services (European Accessibility Act). New initiatives Communication on the Investment Plan for Europe: state of play and next steps. Communication updating the 2012 bioeconomy strategy. Priority 2: A connected digital single market Initiatives to be adopted before the European Parliament elections Adoption by the co-legislators of the remaining legislative proposals to complete the digital single market, in particular : the copyright package; the proposals on cybersecurity, in particular on the reinforcement of the European Union Agency for Network and Information Security (ENISA); the directive on privacy and electronic communications; the proposal on online platforms aimed at ensuring a fair, predictable, sustainable and trust-building environment in the online economy; proposals on contracts for online sales and any other distance selling of goods and on contracts for the supply of digital content; the proposals on the establishment of a joint undertaking for high performance computing, on the re-use of public sector information and on the implementation and operation of the .eu top level domain name. Adoption by the co-legislators of the proposal establishing the European Industrial, Technological and Research Competence Center for Cybersecurity (presented today). New initiatives Coordinated plan on the development of artificial intelligence in Europe. Disinformation Action Plan. Commission recommendation on the establishment of a European format for the exchange of electronic health records. 5 Priority 3: A resilient energy Union with a forward-looking climate change policy Initiatives to be adopted before the European Parliament elections Adoption by the co-legislators of the Commission's proposals on the implementation of implementation of the Energy Union and climate change policy, including: the remaining proposals of the 'Clean Energy for All Europeans' package; the proposal for common rules for gas pipelines entering the European gas market; the 'Europe on the move' package; and the 'Mobility and Climate Change' package. New initiatives Strategy for a long-term reduction of greenhouse gas emissions in the EU in accordance with the Paris agreement (in view of the climate change conference in Katowice from 3 to 14 December). 4th report on the state of the energy union. Report on the Strategic Action Plan on Batteries. Proposal to adapt to a Union of 27 the references to energy efficiency targets at EU level (expressed in absolute values) for 2030 (legislative act in preparation for Brexit). Other initiatives to give perspective for the future of the Union Reflection paper "Towards a Sustainable Europe by 2030" on the follow-up to the UN Sustainable Development Goals, including the Paris Agreement on climate change. Towards a new institutional framework for our energy and climate policy by 2025: options for an increased use of qualified majority voting and for a reform of the Euratom Treaty. Priority 4: A deeper and fairer internal market with a strengthened industrial base Initiatives to be adopted before the European Parliament elections Adoption by the co-legislators of the proposals relating to the social dimension of the European Union, in particular the proposals relating to : to the European Labor Authority; the modernization of the rules on the coordination of social security systems; the protection of workers against the risks related to exposure to carcinogens or mutagens at work (second and third revisions); improving the transparency and legal predictability of employment contracts (revision of the directive on written declaration); work-life balance and the revision of the founding regulations of the tripartite agencies (Eurofound, EUOSHA and Cedefop). Adoption of the proposals concerning tax justice in the digital economy, the Common Consolidated Corporate Tax Base, and the creation of a definitive single VAT regime in the EU. Adoption by the co-legislators of the proposals relating to the capital markets union, in particular those concerning: the pan-European individual retirement savings product; amendments to the European Market Infrastructure Regulation; reviewing and strengthening the missions, governance and funding of the European Supervisory Authorities; sustainable financing; and the recommendation of the European Central Bank to amend Article 22 of the Statute of the European System of Central Banks and of the European Central Bank. Adoption by the co-legislators of the proposal for targeted amendments to the money laundering aspects of the three regulations establishing the European Supervisory Authorities (presented today). Adoption by the co-legislators of the remaining proposals under the single market strategy, in particular the package on goods and services and the proposal to amend the regulation on supplementary protection certificates. Adoption by the co-legislators of the proposal on business insolvency, restructuring and second chances. Adoption by the co-legislators of the proposals relating to the location of the seat of the European Banking Authority and the European Medicines Agency (legislative act in preparation for Brexit). Adoption by the co-legislators of the proposal for EU type-approval for motor vehicles (legislative act in preparation for Brexit). Adoption by the co-legislators of the proposals defining a new maritime route to link Ireland to the continental components of the North Sea-Mediterranean corridor of the trans-European transport network and to remove from the United Kingdom the responsibility for the periodic evaluation of the bodies responsible for inspections and vessels approved at Union level by the Commission, to be entrusted to another EU27 Member State (legislative act in preparation for Brexit). New initiatives Communication on the single market including an assessment of the remaining obstacles and courses of action to remedy them (November 2018). Communication on a wider EU framework on endocrine disruptors. Other initiatives aimed at providing a perspective for the future of the Union 7 A more efficient tax law-making process: identification of areas for a move to qualified majority voting (January/February 2019). A more efficient law-making process in the area of social policy: identifying areas for increased use of qualified majority voting (January/February 2019). Priority 5: A deeper and fairer Economic and Monetary Union Initiatives to be adopted before the European Parliament elections Adoption by the co-legislators of the proposals completing the banking union, in particular the proposals on risk reduction, the package of measures relating to non-performing loans, and the European deposit insurance scheme. Adoption of the proposals under the Economic and Monetary Union package, including the gradual transformation of the European Stability Mechanism into a European Monetary Fund, the creation of a specific budget line dedicated to the euro area in the EU, providing (1) support for structural reforms based on the Commission's structural reform support programme, (2) a stabilization function, (3) a safety net for the banking union , and (4)a convergence instrument to provide pre-accession assistance to Member States with a derogation from the adoption of the single currency. Adoption of the proposal to gradually establish a unified representation of the euro area within the International Monetary Fund. Other initiatives aimed at providing a perspective for the future of the Union Communication on strengthening the international role of the euro (before the end of the year). Priority 6: trade: a balanced and innovative trade policy to harness globalization Initiatives to be adopted before the elections to the European Parliament Conclusion of the economic partnership agreement with Japan. Signing and conclusion of the Free Trade Agreement and Investment Protection Agreement with Singapore. Signature and conclusion of the modernized comprehensive agreement with Mexico. Signature of the free trade agreement and the investment protection agreement with Vietnam. 8 Completion of negotiations on an Association Agreement with Mercosur and on a modernized Association Agreement with Chile. Rapid progress in negotiations with Australia and New Zealand. Adoption by the co-legislators of the proposal for the control of foreign direct investment in the EU and of the amended proposal for an international instrument on public procurement. Adoption by the co-legislators of the proposal relating to the distribution of the tariff quotas of the Union's WTO schedule (legislative act in preparation for Brexit). Priority 7: an area of justice and fundamental rights based on mutual trust Initiatives to be adopted before the elections to the European Parliament Adoption by the co-legislators of the proposals to implement the European agenda on security, in particular as regards interoperability between EU information systems on security, border and migration management; cross-border law enforcement access to electronic evidence; the marketing and use of explosives precursors; cross-border access by law enforcement authorities to financial data and the use of such data by those authorities; and the fight against fraud and counterfeiting of means of payment other than cash. Adoption by the co-legislators of the proposal for a regulation on the prevention of the online dissemination of terrorist content (presented today). Adoption by the European Council of the extension of the mandate of the European Public Prosecutor's Office to cross-border terrorism (presented today). Adoption by the co-legislators of the proposals for the European Criminal Records Information System (ECRIS). Adoption by the co-legislators of the 'A New Deal for Consumers' package, aimed at facilitating the coordination and effective action of national consumer protection authorities at EU level and strengthening public control of consumer protection. application of measures and better protection of consumer rights. Adoption by the co-legislators of the proposal on the protection of persons reporting breaches of Union law ('whistleblower protection proposal'). Adoption by the co-legislators of the proposal for the European Union Civil Protection Mechanism (RescEU). Adoption by the co-legislators of the proposal for a regulation amending Regulation (EU, Euratom) No 1141/2014 as regards a verification procedure relating to infringements of the rules on the protection of personal data in the context of elections to the European Parliament (presented today), together with a Commission recommendation on electoral cooperation networks, online transparency and protection against cybersecurity incidents in the context of European Parliament elections (presented today); a communication on free and fair European elections (presented today); and a guidance document on the application of EU data protection law in the electoral context (presented today). Other initiatives to provide perspective for the future of the Union New reinforcement of the 2014 rule of law framework Priority 8: Towards a new migration policy Initiatives to be adopted before the elections to the European Parliament Adoption by the co-legislators of the reform of the Dublin system and of the regulation relating to asylum procedures, which should also make it possible to close the related files (which were the subject of a political agreement within the framework of the trilogues), and in particular: the creation of a new Agency for asylum; the reform of Eurodac; the revision of the Reception Conditions Directive and of the Regulation on the conditions to be fulfilled by asylum seekers, and the implementation of the Union framework for resettlement. Adoption by the co-legislators of the proposal to further strengthen the capacities of the European Border and Coast Guard Agency, which will enable it to constitute a permanent corps of 10,000 EU border guards by 2020, strengthen its powers in the field of return and to carry out activities in partner countries outside the EU (presented today). Adoption by the co-legislators of the proposal to further strengthen the European Union Agency for Asylum (presented today). Adoption by the co-legislators of the proposal to strengthen and improve the coherence and effectiveness of the return policy, to ensure the rapid return of persons not eligible for international protection and to reduce the incentives for irregular migration (presented today). Adoption by the co-legislators of the proposal on the entry and residence of third-country nationals for the purpose of high-skilled employment ('EU Blue Card proposal'), taking into account the Communication on pathways of legal migration (presented today). Adoption by the co-legislators of the proposals concerning the revision of the Community visa code, the visa information system and the regulation on immigration liaison officers. 10 Adoption by the co-legislators of the proposal to update the Schengen Borders Code. New initiatives Communication on visa reciprocity. Proposal relating to the inclusion of the United Kingdom on the list of countries whose nationals must have a visa or on the list of countries whose nationals are exempt from the visa requirement (legislative act in preparation for Brexit). Priority 9: A stronger Union on the international scene Initiatives to be adopted before the European Parliament elections Follow-up by the European Council, the European Parliament and the Council of the Commission's initiative calling for more efficient decision-making for the EU's Common Foreign and Security Policy (presented today). Communication on a new AfricaEurope Alliance for Sustainable Investment and Jobs (presented today). Communication entitled 'Towards a more efficient architecture for investment outside the European Union' (presented today). New initiatives EU strategy to link Europe and Asia (in view of the Asia-Europe summit). Priority 10: A Union of democratic change Initiatives to be adopted before the European Parliament elections Adoption by the co-legislators of the reform of the regulation on the European citizens' initiative. Adoption by the co-legislators of the proposal to reform the comitology regulation. Subsidiarity: Adoption by the co-legislators of the proposal to amend the Summer Time Directive to remove the EU-wide obligation to change time twice a year, taking into account the power of Member States to choose their time zone, in a coordinated way between neighboring Member States (presented today). Adoption by the co-legislators of the proposals relating to the alignment of existing legislation providing for the use of the regulatory procedure with scrutiny of Articles 290 (delegated acts) and 291 TFEU (executing acts). Other initiatives aimed at giving a perspective for the future of the Union 11 Communicating on Europe (Communication on how to make the Union more united, stronger and more democratic in terms of communication). The 2018 State of the Union Address and this Letter of Intent lay the groundwork for a resolute common commitment to deliver on our promises from our three institutions. This commitment will prove to Europeans the added value of the European Union in this crucial period which precedes the elections to the European Parliament. What we have presented today takes into account the contributions we have received from the European Parliament and the Council, and constitutes the starting point for the interinstitutional dialogue foreseen by the framework agreement on relations between the European Parliament and the Commission and by the interinstitutional agreement on better lawmaking. We are very attached to this important interaction with the European Parliament and the Council, as well as with national parliaments. We are convinced that our exchanges will establish a solid foundation for the decisive year ahead. To help us honor our commitments, tackle several major challenges that remain and offer Europeans a perspective of what the future will hold for the Union. The Commission is and will remain firmly committed to basing its work on better regulation principles. We want to be visible on major issues and more discreet on less important issues. The principles of subsidiarity and proportionality will guide all of our actions. We will base our decision-making on concrete evidence and are ready to make political choices whenever necessary. The year 2019 will be decisive for the Union and its place in this increasingly uncertain world. We cannot let up, even for a moment, in the efforts made to show our fellow citizens that the European Union is there to protect them, give them the means to act and defend them. That together we can achieve a more united, stronger and more democratic Union. That together we can shape the world, export stability, especially in the Western Balkans, and defend a rules-based international order and our values. You can count on the Commission, as a political institution with a particularly dedicated civil service, to serve as a driving force in this momentous year. And we are counting on you to make the summit in Sibiu on May 9, 2019 a moment of strong achievement with us. Ladies and Gentlemen, One of the bravest minds of our times, Andrei Sakharov, a man so admired by this Parliament, always spoke of his unshakeable faith in the hidden strength of the human spirit. Over the past six months, the Europeans have shown all this strength. We have seen it with caregivers who have moved into nursing homes to care for the sick and the elderly. With the doctors and nurses who have become members of the family for the sick who have come to their last breath. With all the frontline workers who day and night, week after week, took risks for all of us. Their empathy, their courage and their sense of duty inspire us. And I would like to begin this speech by paying tribute to them. Their stories are also very telling of the state of our world and the state of our Union. They testify to the power of the human being and the feeling of mourning which will remain for a long time in our society. And they reveal to us the fragility of everything around us. A virus a thousand times smaller than a grain of sand has reminded us how vulnerable life can be. This virus has laid bare the flaws in our healthcare systems and the limits of a model that prioritizes wealth over well-being. He highlighted the fragility of our planet, which we see every day with melting glaciers, forest fires and now a global pandemic. It has changed the very way we behave and communicate – forcing us to keep our distance, face behind a mask. He showed us how fragile our community of values really is — and how quickly it can be challenged around the world, and even here, in our Union. But our citizens want to get out of this world of the coronavirus, out of this fragility, out of uncertainty. They are ready to change and ready to move forward. And, for Europe, the time has come to to act. For Europe, the time has come to show the way forward in order to emerge from this fragility and acquire new vitality. That's what I want to talk about today. Ladies and gentlemen deputies, If I say these words, it is because, in recent months, we have rediscovered the value of what we have in common. As people, we have all sacrificed some of our individual freedom for the safety of others. And as a Union, we have all shared some of our sovereignty for the common good. We have transformed fear and divisions between Member States into confidence in our Union. We have shown what is possible when we trust each other and our European institutions. And so, we choose not only to repair and recover here and now, but also to create a better way of life for the world of tomorrow. This is the raison d'être of the NextGenerationEU recovery instrument. We now have the opportunity to shape change rather than suffer it through disaster or dictate from elsewhere. To emerge stronger from the test by creating prospects for the world of tomorrow, and not simply by making contingency plans for the world of yesterday. We have everything necessary to achieve this. We swept away the old excuses and comfort zones that have always held us back. We have the vision, we have the plan, we have the investments. Now is the time to get to work. This morning, I sent President Sassoli and Chancellor Merkel – who represents the German Presidency – a letter of intent outlining the Commission's plans for the coming year. I will not present all the initiatives today, but I would like to touch on the points on which our Union must concentrate during the next twelve months. COMING OUT OF THE CRISIS TOGETHER: KEEPING EUROPE'S PROMISES Ladies and Gentlemen, Europeans are still suffering. It is a time of deep anxiety for millions of citizens worried about the health of their families, the future of their jobs or simply surviving until the end of the month. The pandemic – and the uncertainty that comes with it – is not over. And the revival is still in its infancy. Our first priority is therefore to help each other out of the crisis. To be there for those who need it. Thanks to our unique social market economy, Europe is able to do just that. It is above all a question of a human economy which protects us against the great risks of life – illness, accidents of life, unemployment or poverty. It provides stability and helps us better absorb shocks. It creates opportunity and prosperity by promoting innovation, growth and a level playing field. Never has this enduring promise of protection, stability and opportunity been more important than today. Let me explain why. First, Europe must continue to protect lives and save jobs. This is all the more important in the midst of a pandemic that shows no signs of abating. We know how quickly the number of cases can grow and spiral out of control. We must therefore continue to face this pandemic with the greatest caution, the greatest responsibility and the greatest unity. Over the past six months, our health systems and our workers have worked miracles. Each country has endeavored to do the best possible for its citizens. And Europe has done more together than ever before. When Member States closed their borders, we created dedicated lanes for goods. When more than 600,000 EU citizens were stranded in all parts of the world, the EU repatriated them. When some countries imposed export bans on essential medical products, we ended them and ensured that essential medical equipment got to where it was needed. We have worked with European manufacturers to increase the production of masks, gloves, tests and respirators. Our civil protection mechanism has enabled Romanian doctors to treat patients in Italy or Latvia to send masks to its Baltic neighbors. And we did all of this without having the full skills. For me, it is obvious: we must build a stronger European Health Union. To begin to realize this idea, we must now learn the first lessons from the health crisis. We must ensure that our new 'EU for Health' program stands the test of time. That is why I proposed to increase funding and I am grateful to this Parliament for being prepared to fight for more funding and to remedy the budget cuts made by the European Council. We also need to improve our preparedness and crisis management related to cross-border health threats. As a first step, we will propose to strengthen the role and powers of the European Medicines Agency and of the ECDC — our center for disease prevention and control. Secondly, we will create an agency for advanced biomedical research and development at European level, as exists in the United States. This new agency will support our capacity and preparedness for cross-border threats and emergencies, whether natural or intentional. We need strategic reserves to reduce dependency in our supply chain, especially for pharmaceuticals. Third, it is clearer than ever that we need to address the issue of health skills. And I think this is a noble and urgent task for the Conference on the Future of Europe. And since we have experienced a global crisis, we must learn from it for the whole world. That is why, together with Prime Minister Conte and the Italian G20 Presidency, I will convene a Global Health Summit in Italy next year. Europeans will thus see that our Union is there to protect all of us. And that is exactly what we have done with regard to the workers. When I took office, I promised to create an instrument to protect workers and businesses from external shocks. Because my experience as Minister of Labor and Social Affairs had taught me that these devices are effective. Thanks to them, people keep their jobs, companies keep their skills, and SMEs keep their business. These SMEs are the engine of our economy and they will be the engine of our recovery. This is why the Commission created the SURE programme. I would also like to thank this House for having worked on the proposal in record time. If Europe has, until now, avoided the massive unemployment that we observe elsewhere, it is largely thanks to the partial unemployment schemes from which nearly 40 million people have benefited. This speed and this common objective will allow 16 countries to soon receive some 90 billion euros from the SURE program to support workers and businesses. From Lithuania to Spain, these funds will bring some peace of mind to families who need this income for food or to pay their rent. And they will help protect millions of jobs, incomes and businesses across our Union. This is real European solidarity in action. And this reflects the fact that in our Union, the dignity of work must be sacred. But the truth is, for too many people, hard work no longer pays. Wage dumping destroys the dignity of work, penalizes the entrepreneur who pays decent wages and distorts fair competition in the single market. The Commission will therefore present a legislative proposal to help Member States put in place a framework for minimum wages. Everyone must have access to a minimum wage, whether under a collective agreement or a statutory minimum wage. I am a strong supporter of collective bargaining and the proposal will fully respect national jurisdictions and traditions. We have seen in many Member States how a well-negotiated minimum wage ensures employment and fairness, both for workers and for the companies that really value them. Minimum wage works – and it's time the hard work pays. The second promise of the social market economy is that of stability. The European Union and its Member States have reacted to an unprecedented crisis with an unprecedented response. By showing that it is united and up to the task, Europe has brought the necessary stability to our economies. The Commission immediately triggered the general escape clause for the first time in our history. We have relaxed our rules on EU funds and state aid. We have authorized more than €3 trillion in aid for businesses and industry: from fishermen in Croatia and farmers in Greece, to SMEs in Italy and the self-employed in Denmark. The European Central Bank has taken decisive action under its Pandemic Emergency Purchase Program, PEPP. The Commission has proposed, in record time, NextGenerationEU and a revamped budget. It combines investments and essential reforms. The Council approved it in record time. This Assembly is working to vote on the project as quickly as possible. For the first time – and for exceptional times – Europe has put in place its own common instruments to complement national fiscal stabilizers. This is a moment of remarkable unity for our Union. This is an achievement that should inspire our collective pride. Now we have to stay the course. We have all seen the forecasts. We can expect our economies to rebound after a 12% decline in GDP in the second quarter. But, just like the virus, uncertainty persists – here in Europe and around the world. Now is surely not the time to withdraw our support. A support policy remains necessary for our economies, and we will have to find a delicate balance between financial support and budgetary sustainability. In the longer term, a strengthening of the Economic and Monetary Union is the best way to ensure stability and competitiveness. Confidence in the euro has never been greater. The historic agreement on NextGenerationEU illustrates the political support it enjoys. We must now take advantage of this opportunity to carry out structural reforms in our economies and complete the Capital Markets Union and the Banking Union. Deep and liquid financial markets are essential to guarantee the access for businesses to the financing they need to grow and invest in the recovery and in the future. And it is also a prerequisite for strengthening the international role of the euro. So let's get to work to bring this generational project to fruition. Ladies and gentlemen, the third enduring promise is the promise of opportunity. The pandemic has reminded us of many things that we may have forgotten or taken for granted. She reminded us how much our economies are linked and how essential a fully functioning single market is to our prosperity and our ability to act. The single market means opportunity – it gives consumers value for money, to the company to sell where it wants in Europe and to the industry to strengthen its international competitiveness. And it offers all of us the opportunity to make the most of the freedoms that we Europeans cherish. It offers our businesses the opportunity to grow to the size they need to thrive and acts as a refuge for them in difficult times. We count on him every day to make our lives easier – and he is essential for us to manage the crisis and regain our strength. Let's give it a push. We must break down the barriers to the single market. We need to reduce red tape. We need to speed up the implementation and enforcement of the rules. And we must restore the four freedoms – in full and as quickly as possible. The proper functioning of the Schengen area of free movement is a fundamental element in this respect. We will work with Parliament and Member States to put this issue at the top of our political priorities and we will propose a new strategy for the future of Schengen. Thanks to a strong internal market, European industry has long driven our economy, ensuring stable living conditions for millions of people and creating the social mechanisms around which our communities are built. We presented our new industrial strategy in March to ensure that industry can lead the double ecological and digital transition. The last six months have only accelerated this transformation, at a time when the global competitive landscape is changing dramatically. This is why we will update our industrial strategy during the first half of next year and we will adapt our competition framework, which must also evolve. PROPELING EUROPE INTO THE FUTURE: BUILDING THE WORLD WE WANT TO LIVE IN Ladies and gentlemen, All these measures will help Europe recover. But even as we move forward together, we must also propel ourselves into the world of tomorrow. It is all the more urgent to accelerate as the future of our fragile planet is at stake. The freezing of much of the world's activity during periods of confinement has not halted the dangerous warming of our planet. Everything around us bears witness to this: the evacuations of houses caused by the collapse of a Mont Blanc glacier, the fires that ravage Oregon, the exceptionally serious drought that destroys crops in Romania. But nature has also returned to our lives. Our mental health and physical well-being needed green spaces and clean air. We know change is necessary – and we also know it is possible. The European Green Deal is the project that will allow us to carry out this transformation. It focuses on one goal: to make Europe the first climate-neutral continent by 2050. But we will only achieve this goal if things change – we need to act faster and better. We took a deep dive into each sector to see how quickly we could act and how we could do it in a responsible and evidence-based way. We organized an extensive public consultation and carried out an in-depth impact assessment. On this basis, the European Commission proposes to raise the emissions reduction target for 2030 to at least 55%. I recognize that this increase from 40% to 55% is too big for some and not enough for others. But our impact analysis clearly shows that our economy and our industry can cope with it. And they themselves have the will. Just yesterday I I received a letter from 170 business leaders and investors – from SMEs but also from some of the world's largest groups – calling on Europe to set a target of at least 55%. Our impact assessment clearly shows that achieving this target would put the EU firmly on the path to climate neutrality by 2050 and to fulfilling its obligations under the Paris Agreement. And if others follow our lead, the world can keep global warming below 1.5 degrees Celsius. I am fully aware that many of our partners are far from this objective – and I will come back to the carbon border adjustment mechanism later. But for us, the 2030 target is ambitious, achievable and beneficial for Europe. We can do it. We have already shown that we are capable of it. While emissions have fallen by 25% since 1990, our economy has grown by more than 60%. The difference is that there are now more technological means, skills and investments. And we are already on the way to a circular economy with carbon-neutral production. More and more young people are campaigning for change. There is growing evidence that what is good for the climate is good for the economy and good for all of us. And we have solemnly promised to leave no one behind during this transformation. Our Just Transition Fund will allow us to support regions that will have to undergo greater and more costly change. We have everything to succeed. It is now our responsibility to do everything possible to achieve our goal. Ladies and Gentlemen, Meeting this new target will reduce our dependence on energy imports, create millions of additional jobs and cut air pollution by more than half. To get there, we have to start now. By next summer, we will revise all our climate and energy legislation to bring it into line with the 55% target. We will improve emissions trading, promote the use of renewable energy, improve energy efficiency and reform energy taxation. But the mission of the European Green Deal goes far beyond reducing emissions. It aims to ensure a systemic modernization of our economy, our society and our industry. Its purpose is to make the world we live in stronger. Our current consumption of raw materials, energy, water and food as well as our use of land are not sustainable. We have to treat nature differently; we must change the way we produce and consume, live and work, eat and heat ourselves, travel and transport. So we'll tackle everything from dangerous chemicals to deforestation and pollution. This is a blueprint for a real recovery. It is an investment plan for Europe. And this is where NextGenerationEU will truly be a game changer. First of all, 37% of NextGenerationEU will be dedicated directly to the objectives of our European Green Deal. And I will ensure that green finance also kicks into high gear. We are the global leaders in green finance and the largest issuer of green bonds in the world. We are breaking new ground in developing a robust EU green bond standard. And I can announce today that we will set a target to raise 30% of NextGenerationEU's €750 billion through green bonds. Secondly, NextGenerationEU should invest in flagship European projects with the greatest impact: hydrogen, renovation and the creation of 1 million electric charging stations. Let me explain how this could work: two weeks ago, in Sweden, the trial phase of a unique pilot project for fossil-free steel production began. Hydrogen will be used there instead of coal to produce clean steel. This shows the potential of hydrogen to support our industry through a new clean operating license. I want NextGenerationEU to create new European hydrogen valleys to modernize our industries, power our vehicles and breathe new life into rural areas. The second example concerns the buildings in which we live and work. Our buildings generate 40% of our emissions. They must become more economical, less expensive and more durable. And we know that the construction sector can even be turned into a carbon sink, and then cease to be a source of carbon, if organic building materials such as wood and smart technologies such as artificial intelligence are used. I want NextGenerationEU to trigger a wave of European renovation and make our Union a leader in the circular economy. But it is not just an environmental or economic project: it must also be a new cultural project for Europe. Each movement has its own cachet. And we need to give our systemic change its own aesthetic – to combine style with sustainability. This is why we are going to create a new European Bauhaus – a space of co-creation in which architects, artists, students, engineers, designers work together to achieve this goal. This is the reason for be from NextGenerationEU. It's shaping the world we want to live in. A world served by an economy that reduces emissions, boosts competitiveness, reduces energy poverty, creates rewarding jobs and improves quality of life. A world in which digital technologies are used to build a healthier and greener society. This can only happen if we act together, and I will be particularly careful that the recovery plans not only take us out of the crisis, but also help us propel Europe into the world of tomorrow. Ladies and Gentlemen, Imagine for a moment experiencing this pandemic without digital technology. Having to observe a quarantine – isolated from your family and your community, cut off from the world of work – or, experience great difficulty in obtaining supplies. In fact, it's not that hard to imagine that it happened a hundred years ago, during the last great pandemic. A century later, modern technologies allow young people to follow a distance education and millions of people to work while staying at home. They allow factories to continue to operate, businesses to sell their products and public administrations to provide essential public services to citizens from a distance. Digital innovation and transformation achieved in weeks would otherwise have taken years. We are reaching the limits of what is possible with analog means. And this acceleration has only just begun. We must make the coming decade Europe's 'digital decade'. We need a common plan for digital Europe, with clearly defined targets for 2030, including on connectivity, skills and digital public services. We also need to adopt clear principles: the right to privacy and connectivity, freedom of expression, free flow of data and cybersecurity. But Europe must lead the way in the digital field, otherwise it will be forced to align itself with other actors who will set these standards for us. This is why we must act quickly. There are three areas I think we should focus on. First, the data. When it comes to personal data – in business-to-consumer commerce – Europe has been too slow and now depends on others. This must not be repeated with industrial data. The good news is that in this area Europe is still ahead – we have the technology, and above all the industry. But the race is not yet won. The volume of industrial data in the world will quadruple over the next five years, and the opportunities it offers will grow at the same rate. We must give our companies, SMEs and start-ups, as well as our researchers, the means to fully exploit their potential. Industry data is gold when it comes to developing new products and services. The reality, unfortunately, is that 80% of industrial data is collected but never used. It is a waste. A true data economy would, on the other hand, be a powerful driver of innovation and job creation. We must therefore preserve this data for the benefit of Europe and make it widely accessible. We need common data spaces, for example in the energy or healthcare sectors. This would strengthen innovation ecosystems where universities, companies and research institutions would benefit from secure access to data and could collaborate on this theme. This is why, within the framework of NextGenerationEU, we will create a European cloud, based on Gaia X. The second area on which we must concentrate our efforts, it's technology – and in particular that of artificial intelligence. Whether it's precision farming, more reliable medical diagnostics or safe autonomous driving, artificial intelligence will open up new worlds for us. But these worlds also need rules. We in Europe want a set of rules that puts people at the centre. Algorithms should not be a black box, and there should be clear rules if something goes wrong. The Commission will propose a legislative instrument to this effect next year. It will relate in particular to the control of our personal data, which escapes us too often today. Whenever an application or website offers us to create a new digital identity or easily connect through a large platform, we have no idea what actually happens to our data. This is why the Commission will soon propose a secure European electronic identity. A reliable identity, which any citizen can use anywhere in Europe for any purpose, such as paying taxes or renting a bicycle. A technology that will allow us to control what data we share and the use that can be made of it. The third point concerns infrastructure. Data connections need to keep up with the rapid evolution of our society. If we seek to create a Europe of equal opportunities, it is unacceptable that 40% of people in rural areas still do not have access to fast broadband. This type of connection is now essential to be able to telecommute, learn from home, buy online and increasingly use important new services. Without a broadband connection, it is virtually impossible to grow or run a business effectively. Fast connections represent a unique opportunity – but also a prerequisite – to revitalize rural areas. They absolutely need it to make the most of their potential and attract more people and investment. The boost NextGenerationEU will give to investment is a unique opportunity to stimulate growth down to the smallest village. This is why we want to focus our investments on secure connectivity and on the deployment of 5G, 6G and fiber. NextGenerationEU is also a unique opportunity to develop a more coherent European approach to connectivity and the deployment of digital infrastructure. None of these goals is an end in itself – what is at stake is Europe's digital sovereignty, both large and small. With this in mind, I am pleased to announce an investment of €8 billion in the next generation of supercomputers – state-of-the-art technology 'made in Europe'. We also want to see European industry develop its own next-generation microprocessors, which will enable us to use increasing volumes of data in an energy-saving and safe manner. This is what the “digital decade of Europe” will be made of! Ladies and gentlemen deputies, If Europe wants to move forward and move forward quickly, we must sweep away our hesitations. The challenge is to give Europe more control over its future. We have everything it takes to make it happen. And the private sector is desperately waiting to contribute, too. With new digital hubs springing up everywhere from Sofia to Lisbon to Katowice, there's never been a better time to invest in European tech companies. We have the people, the ideas and the strength of a Union to succeed. This is why we will invest 20% of the NextGenerationEU budget in digital. We want to pave the way, a European way, of the digital age: a way that is based on our values, our strength, our global ambitions. A EUROPE FULL OF VITALITY IN A FRAGILE WORLD Ladies and Gentlemen, Europe is determined to take advantage of this period of transition to build the world in which we want to live. Of course, this does not stop at our borders. The pandemic has highlighted both the fragility of the global system and the importance of cooperation in addressing collective challenges. Faced with the crisis that the world is experiencing, some choose to withdraw into themselves. Others actively seek to destabilize the system. Europe chooses to reach out. Our vision of leadership is not propaganda that serves our interests. It is not about putting Europe first. Rather, it is about being the first to answer the call when needed. During the pandemic, European planes have delivered thousands of tonnes of protective equipment all over the world, from Sudan to Afghanistan, from Somalia to Venezuela. None of us will be safe until we are all safe, no matter where we live or what we own. An accessible, affordable and safe vaccine is the most promising way to keep us safe. At the start of the pandemic, there was no funding, no global framework for the development of a coronavirus vaccine, just a race to be the first to get it. This is when the EU stepped in to organize a global response. With civil society, the G20, the WHO and other partners, we have brought together more than 40 countries to raise €16 billion to fund vaccine research, testing and treatment for the whole world, demonstrating the unrivaled mobilizing power of the EU. But finding a vaccine is not enough. We must ensure that European citizens and those around the world have access to it. The EU joined the global COVAX mechanism this month and contributed €400 million to ensure that safe vaccines become accessible not only to those who can afford them but to everyone who needs them. Vaccine nationalism puts lives at risk. Vaccine cooperation saves them. Ladies and Gentlemen, We strongly believe in the strength and value of cooperation within international bodies. VS' It is with a strong United Nations that we can find long-term solutions to crises such as those in Libya or Syria. It is with a strong World Health Organization that we can better prepare and respond to global pandemics or local epidemics – coronavirus or Ebola. And it is with a strong World Trade Organization that we can guarantee fair competition for all. But it must also be recognized that the need to revitalize and reform the multilateral system has never been more urgent. An insidious paralysis has taken hold of our global system. Great powers withdraw from institutions or take them hostage to serve their own interests. All of these paths are dead ends. Yes, we want change. But change by building and not by destroying. This is why I want the EU to take the lead in reforming the WTO and the WHO, in order to adapt them to today's world. But we know that multilateral reforms take time, and in the meantime the world will keep turning. There is no doubt that Europe must take a clear position and act quickly on international issues. The latest meeting of EUChina leaders took place two days ago. The EU's relationship with China is both one of the most strategically important and one of the most challenging. From the start, I said that China was a negotiating partner, an economic competitor and a systemic rival. We have common interests on issues such as climate change – and China has shown a willingness to cooperate by engaging in high-level dialogue. However, we expect China to respect its commitments under the Paris Agreement and to lead by example. Much remains to be done in terms of fair market access for European companies, reciprocity and overcapacity. Our trade and investment partnership remains unbalanced. And it is indisputable that the systems of governance and society that we promote are very different. We believe in the universal value of democracy and the rights of the individual. Europe also has its problems – think for example of anti-Semitism. But we are debating it in the public sphere. Not only are criticism and opposition accepted, but they are protected by law. So we must always speak out against human rights abuses when they happen and wherever they happen, in Hong Kong or among the Uyghurs. But what is holding us back? Why are even simple statements about EU values delayed, watered down or held hostage for other reasons? When Member States criticize Europe for being too slow, I ask them to be brave and finally move on to qualified majority voting – at least when it comes to human rights and implementation of penalties. This House has repeatedly called on Europe to adopt an equivalent of the 'Magnitsky law' – and I can announce that we are now going to present a proposal. We need to complete our toolbox. Ladies and Gentlemen, Whether in Hong Kong, Moscow or Minsk: Europe must take a clear and quick position. I want to say it loud and clear: the European Union is on the side of the Belarusian people. We are all moved by the immense courage of those who peacefully gathered in Independence Square or participated in the courageous women's march. The elections that brought them to the streets were neither free nor fair and the brutal way the government responded was shameful. Belarusians must be free to decide their own future. They are not mere pawns on a chessboard. To those who argue for closer ties with Russia, I say that the poisoning of Alexei Navalny with a chemical nerve agent is not an isolated act. We have seen this type of practice in Georgia and Ukraine, Syria and Salisbury – not to mention election interference around the world. These practices are not changing – and a gas pipeline is not going to change them. Turkey is an important neighbor and always will be. But if we are geographically close, the distance between us seems to keep growing. Yes, Turkey is in a troubled region. And yes, it receives millions of refugees, for whose reception we provide considerable financial assistance. But none of this justifies the attempts to intimidate her neighbours. Our Member States, Cyprus and Greece, will always be able to count on Europe's full solidarity to protect their legitimate sovereignty rights. De-escalation in the Eastern Mediterranean is in our mutual interest. In this regard, the return of exploration vessels to Turkish ports in recent days is a step in the right direction. It was necessary to create the necessary space for dialogue. There is only one way forward: refrain from acting unilaterally and resume talks in good faith, for that is the way to stability and durable solutions. Ladies and Gentlemen, Europe must react more firmly to events taking place on the international scene, but it must also deepen and improve its partnerships with its friends and allies. And it must begin by revitalizing longer-established partnerships. We may not always agree with recent White House decisions. But we will always cherish the transatlantic alliance — based on shared values and history, and an unbreakable bond between our peoples. Whatever happens at the end of this year, we are therefore ready to develop a new transatlantic agenda to strengthen our bilateral partnership – whether in the area of trade, technology or taxation. And we are ready to work together to reform the international system that we have built together, with partners who share the same values, in our own interests and in the interests of the common good. We need to make a new start with old friends – on both sides of the Atlantic and on both sides of the Channel. The scene that took place in this same hemicycle, when we said goodbye to the melody of "Ce n'est qu'un au revoir" while holding hands, was eloquent. She showed that the affection for the British people will never waver. On the other hand, with each passing day, the chances of concluding a deal on time really weaken. Negotiations are always difficult. We are used to it. And the Commission has, in the person of Michel Barnier, the most competent and experienced negotiator to guide us through these pitfalls. However, the negotiations have not progressed as we would have liked. We now have very little time left. As always, this Assembly will be the first informed and it will have the last word. And I can assure you that we will continue to keep you informed at all times, just as we did for the Withdrawal Agreement. Negotiations on this agreement lasted three years and we worked tirelessly on it. Line after line, word after word. And together, we succeeded. The result safeguards our citizens' rights, financial interests, the integrity of the single market – and above all the Good Friday Agreement. The EU and the UK agreed that this was the best and only way to secure peace on the island of Ireland. And we will never go back on that. This agreement has been ratified by this House and by the House of Commons. It is impossible to modify it unilaterally, to ignore it or cease to apply its provisions. It is a matter of law, trust and good faith. And it's not just me saying this – I remind you of the words of Margaret Thatcher: 'The UK doesn't break treaties. It would be bad for Britain, bad for relations with the rest of the world and bad for any future trade deal.” What was true then is still true today. Trust is the foundation of any strong partnership. Europe will always be ready to build strong partnerships with its closest neighbours. It starts with the Western Balkans. Six months ago, the decision to open accession negotiations with Albania and North Macedonia was truly historic. Indeed, the future of this whole region is in the EU. We share the same history and the same destiny. The Western Balkans are part of Europe, they are not just a stopover on the Silk Road. We will soon present an economic recovery plan for the Western Balkans, focusing on a number of regional investment initiatives. And we will also be there for the countries of the Eastern Partnership and for our partners in the Southern Neighbourhood, to help them create jobs and relaunch their economies. When I took office, my very first visit outside the European Union was for the African Union, and this choice came naturally. It came naturally, and the message was clear, because we are not just neighbours, we are natural partners. Three months later, during a new visit with the whole College, we established our priorities for our new strategy with Africa. It is a partnership based on equality, which offers both parties common perspectives and responsibilities. Africa will be a key partner in building the world we want to live in – whether on climate-related issues or digital or trade. Ladies and Gentlemen, We will continue to believe in open and fair trading relationships around the world. Not as an end in itself – but as a means to bring prosperity to our countries and to promote our values and standards. More than 600,000 jobs in Europe are closely linked to trade with Japan. And the agreement we recently concluded with Vietnam has ensured historic rights for millions of workers there. We will use our diplomatic power and our economic influence to negotiate agreements that make a difference – agreements providing, for example, maritime protected areas in Antarctica. It would be one of the greatest acts of environmental protection in history. We will build hugely ambitious coalitions on issues such as digital ethics or the fight against deforestation – and we will develop collaborations with all like-minded partners – from Asian democracies to Australia, Africa, the Americas and any other country wishing to join. We will work for a fair globalization. But we cannot take it for granted. We must emphasize fairness and a level playing field. And Europe will move forward alone or with partners willing to join. For example, we are currently working on a carbon border adjustment mechanism. Carbon must have its price – because nature can no longer pay the price. This carbon border adjustment mechanism should incentivize foreign producers and EU importers to reduce their carbon emissions, while ensuring a level playing field in a WTO-compatible way. . The same principle applies to digital taxation. We will do everything we can to reach an agreement within the framework of the OECD and the G20. But there is no doubt that, if the agreement reached does not allow the establishment of a fair tax system providing long-term sustainable revenues, Europe will present a proposal in this direction at the beginning of next year. We want Europe to play the role of defender of fairness at global level. NEW VITALITY FOR EUROPE Ladies and Gentlemen, If Europe is to play this vital role in the world, it must also generate new vitality internally. And in order to move forward, we must now overcome the differences that have held us back. The historic agreement on the NextGenerationEU recovery instrument shows that it is possible to overcome these differences. The speed with which we made decisions on tax rules, of State aid or concerning the SURE instrument is proof that, despite these differences, we can act. So let's act. The question of migration has been the subject of sufficiently long discussions. Migration has always existed in Europe – and it always will. Over the centuries, it has defined our societies, enriched our cultures and shaped many of our lives. And it will always be so. As we all know, the migration crisis of 2015 caused many and deep divisions between Member States – some of the scars it left are still visible today. Significant steps have since been taken. But there is still a lot to do. If we are all willing to compromise – without however accepting the slightest compromise with respect to our principles – we can find solutions. Next week the Commission will present its new pact on migration. We will adopt a human-centred and humane approach. Saving lives at sea is not optional. And the countries which fulfill their legal and moral obligations or which are more exposed than the others must be able to count on the solidarity of our entire European Union. We will provide for a closer link between asylum and return. We need to make a clear distinction between those who have the right to stay and those who do not. We will take action to fight smugglers, to strengthen external borders, to deepen external partnerships and to create legal pathways. In addition, we will ensure that those who have the right to stay are included and feel welcome. They have a future to build – and skills, energy and talent. I am thinking of Suadd, this teenage Syrian refugee who arrived in Europe and who dreamed of becoming a doctor. Within three years, she obtained a prestigious scholarship from the Royal College of Surgery in Ireland. I am also thinking of these Libyan and Somali refugee doctors who offered their medical skills when the pandemic hit France. Ladies and gentlemen, if we think of the hardships that these people have overcome and what they have accomplished, we have no choice but to show ourselves capable of managing the issue of migration together. The images of the Moria camp painfully remind us that Europe must act in unity. We all need to step up our efforts in this area and take up our responsibilities – and the Commission will do just that. The Commission is currently working on a plan for a pilot project, run jointly with the Greek authorities, to set up a new camp on the island of Lesbos. We can help with asylum and return procedures and significantly improve the living conditions of refugees. But let us be clear: if we step up our efforts, we expect all Member States to also step up their efforts. Migration is a European challenge and the whole of Europe must do its part. We need to rebuild trust between us and move forward together. And that trust is at the very heart of our Union and the way we do things together. It is anchored in our founding values, in our democracies and in our community of law – to use the term used by Walter Hallstein. It is not an abstract term. The rule of law helps protect citizens from the rule of the law of the strongest. It is the guarantor of our most basic rights and freedoms, day to day. It allows us to express our opinions and to be informed by a free press. Before the end of the month, the Commission will adopt the first annual rule of law report, covering all Member States. It is a prevention tool allowing problems to be detected quickly and solutions to be found. We want this to be a starting point for the Commission, Parliament and the Member States, so that the commitments made are not called into question. The Commission attaches the utmost importance to the rule of law. That is why we will ensure that the funds available under our budget and the NextGenerationEU instrument are protected against all forms of fraud, corruption and conflicts of interest. This is a non-negotiable point. However, the past few months have also reminded us of how fragile the rule of law can be. We have a duty to be constantly vigilant in order to protect the rule of law and allow it to flourish. Violations of the rule of law cannot be tolerated. We will continue to uphold the rule of law and defend the integrity of our European institutions, be it the rule of European law, freedom of the press, the independence of the judiciary or the sale of "golden passports". European stocks are not for sale. Ladies and Gentlemen, These values are more important than ever. I say this because when I think of the state of our Union, it is the words of John Hume – one of the great Europeans who sadly passed away this year that come to mind. If many people live in peace today on the island of Ireland, it is in large part because John Hume had an unwavering belief in humanity and in the resolution of conflict. He used to say that conflict was about difference and peace was about respecting difference. And as he so rightly recalled in 1998 before this Assembly: “European visionaries have decided that difference is not a threat, difference is natural. Difference is the very essence of humanity”. These words are more important today than they have ever been. Because, when we look around us, we wonder where the essence of humanity is when three Wisconsin kids see their father being shot at by the police as they sit in their car. We wonder where is the essence of humanity when citizens dressed in anti-Semitic costumes openly march through our streets during carnival? where is the essence We wonder where is the essence of humanity when citizens dressed in anti-Semitic costumes openly march through our streets during carnival? where is the essencee of humanity when, every day, Roma are excluded from society and other people are rejected simply because of their skin color or their religious beliefs? I am proud to live in Europe, in this open society, based on values and advocating diversity. Yet even here in this Union – such stories are part of the daily reality of so many citizens. And it reminds us that progress in the fight against racism and hate is fragile – in this area, progress is hard won, but very easily lost. This is why the time for change has come. Now is the time to build a truly anti-racist Union – by condemning racism, but also by taking action. The Commission will present an action plan to start putting this project into practice. As part of this, we will propose extending the list of offenses under EU law to all forms of hate crime and hate speech - whether based on race, religion, gender or sexuality. Hate is still hate – and no one should put up with it. We will strengthen our racial equality laws where gaps remain. We will use our budget to fight discrimination in areas such as employment, housing or health care. We will get tougher on enforcement if implementation is delayed. Because in this Union, the fight against racism will never be optional. We will improve education and knowledge about the historical and cultural causes of racism. We will tackle unconscious biases, whether they are caused by citizens, institutions or even algorithms. In addition, the Commission will appoint its first-ever Anti-Racism Coordinator to give this issue priority attention and to work directly with citizens, civil society and institutions. Ladies and Gentlemen, We will spare no effort to build a Union of equality. A Union in which you can be who you are and love whoever you want – without fear of recrimination or discrimination. Because being yourself is not a question of ideology. It is your identity. And no one can ever take it away from you. That's why I want to be clear – “LGBTQI-free zones” are humanity-free zones. And they have no place in our Union. To ensure that we support the whole community, the Commission will soon come up with a strategy to strengthen LGBTQI rights. In this context, I will also advocate for the mutual recognition of family relationships in the EU. If you are a parent in one country, you are a parent in all countries. CONCLUSION Ladies and Gentlemen, This is the world we want to live in. The world where we are united in diversity and adversity. Where we work together to overcome our differences and where we support each other in difficult times. The stronger world, respectful and healthier tomorrow than we are building today for our children. But while we are trying to teach our children about life, our children are teaching us what life is. This year has shown us just how true that is. We can talk about the millions of young people who are demanding change for a healthier planet. Or the hundreds of thousands of magnificent rainbows of solidarity displayed in windows all over Europe by our children. But there is one image that has stuck in my mind for the past six months. An image that captures the world through the eyes of our children. It is the image of Carola and Vittoria. The two young girls playing tennis on the roofs of Liguria in Italy. He does It's not just the talent and courage of the girls that stands out from this image. It is above all the lesson behind it. A lesson in never being blocked by obstacles in your path, never being held back by conventions, and always seizing the moment. Here is what Carola, Vittoria and all the young people in Europe teach us about life every day. This is the next generation of Europeans. NextGenerationEU. This year, Europe followed their lead and leapt forward together. When it came to finding a way for our future, we didn't let old conventions hold us back. When we felt the fragility around us, we seized the moment to give new vitality to our Union. And when we had the choice to go it alone like in the past, we used the full strength of the 27 to give all 27 a chance for the future. We have shown that we are together in this story and that we will come out of it together. Ladies and Gentlemen, The future will be what we make of it. And Europe will be what we want it to be. So let's stop belittling it. And work to build it. To make her strong. And to build the world we want to live in. Long live Europe! so fast and the challenges are so great that it is sometimes difficult to take full measure of them. This time was also marked by the search for a soul. Some reassessed their lives, others debated widely about sharing vaccines and sharing values. But when I look back on the past year, When I look at the state of our Union today, I see a lot of soul in everything we do. It was Robert Schuman who said: Europe needs a soul, an ideal and the political will to serve this ideal. Over the last twelve months, Europe has given substance to these words. In the biggest health crisis the world has seen in a century, we have chosen to face it together, so that every part of Europe has equal access to a life-saving vaccine. In the worst economic crisis the world has seen in decades, we have chosen to face together, with NextGenerationEU. And in the most serious global crisis of all time, we have chosen once again to face up together, with the European Green Deal. We did it all together, the Commission, the Parliament and the 27 Member States. Like a united Europe. And we can be proud of it. But the corona era is not over yet. There is still a lot of suffering in our society as the pandemic drags on. There are sorrows that we can never heal, lives that will never return to normal, and lost time that we can never return to our youth. We face new and persistent challenges in a world that is recovering – but also fracturing – unevenly. So there is no doubt: next year our resolve will once again be put to the test. But I believe that it is the trials that truly bring out our strength our soul. When I look at our Union, I know that Europe will triumph in this ordeal. And what gives me this confidence is the inspiration we can draw from young Europeans. Because our young people have given meaning to empathy and solidarity. They believe we have a responsibility to the planet. And although they are worried about the future, they are determined to make it better. Our Union will be stronger if it is more like the next generation: thoughtful, determined and caring. Rooted in values and bold in action. This spirit will be more important than ever over the next twelve months. This is the message contained in the letter of intent that I sent this morning to President Sassoli and Prime Minister Janša and which sets out our priorities for the coming year. A EUROPE UNITED IN ADVERSITY AND IN ECONOMIC RECOVERY Ladies and Gentlemen, In times of pandemic, a year is a long journey. When I stood before you 12 months ago, I had no idea when we would have – or even if we would ever have – a safe and effective vaccine against COVID19. But today, having denied all criticism, Europe is at the forefront at the world level. More than 70% of adults are fully vaccinated in the European Union. We were the only ones to share half of our vaccine production with the rest of the world. We have delivered over 700 million doses in the European Union, and we have also delivered over 700 million doses to the rest of the world, in over 130 countries. We are the only region in the world to have done so. a pandemic, it's a marathon, not a sprint. We followed the science. We have kept our commitments in Europe. We have kept our commitments in the world. We did it the right way, because we did it the European way. And it worked! But if we have every reason to be confident, we have none to rest on our laurels. Our first – and most urgent – priority is to accelerate global immunization. When we see that on a global scale, less than 1% of the doses administered were in low-income countries, we can only see the extent of the injustice and the degree of urgency. This is one of today's major geopolitical issues. Team Europe is investing one billion euros to ramp up messenger RNA production capacity in Africa. We have already committed to sharing 250 million doses. I can announce today that the Commission will add to this a new donation of 200 million doses by the middle of next year. It is an investment in solidarity, but also in global health. Our second priority is to continue our efforts here in Europe. We see worrying discrepancies in vaccination rates in our Union. So we have to keep going. And Europe is ready. We got 1.8 billion more doses. That's enough for us and our neighbors when booster shots are needed. Let's do everything in our power to ensure that this pandemic does not turn into an unvaccinated pandemic. Our last priority is to be better prepared in the face of pandemics. I said last year that it was time to build the European health union. Today, the result is there. With our proposal, we are making HERA, the new European Health Emergency Preparedness and Response Authority, operational. HERA will be a huge asset to react more quickly and better to future health threats. We have the scientific and innovation capacities, the knowledge of the private sector and the competent national authorities. Now, we have to articulate all of this, in particular with massive funding. This is why I am proposing a new EU-wide health preparedness and resilience mission. And this should be supported by a Team Europe investment of 50 billion by 2027. To ensure that no virus will ever turn a local epidemic into a global pandemic. There couldn't be a better return on investment than this. Ladies and Gentlemen, The work done on the European Health Union is a major step forward. And I would like to thank this House for its support. We have demonstrated that when we act together, we are able to act quickly. Take the example of the digital certificate of the European Union: Today, more than 400 million certificates have been issued throughout Europe. 42 countries on 4 different continents are connected to the system. We proposed it in March. You supported this proposal! Three months later, it was operational. Thanks to this common effort, while the rest of the world was talking about it, Europe simply did it. In many respects, we have done the right thing. We moved quickly to create the SURE instrument. This has supported over 31 million workers and 2.5 million businesses across Europe. We have learned from a past where we were too divided and too far behind. And the difference is clear: the previous time, it took 8 years for the euro zone to return to its pre-crisis GDP level. This time, we expect 19 countries to return to pre-pandemic levels again this year, soon to be followed by the others. Eurozone growth outpaced that of the United States and China in the last quarter. But this is only the beginning. And the lessons of the financial crisis should encourage caution: At the time, Europe declared victory too soon, and we paid the price. We will not make this mistake again. The good news is that with NextGenerationEU, we will now invest in both short-term recovery and long-term prosperity. We will tackle the structural problems of our economy, be it reforming the labor market in Spain, the pension system in Slovenia or taxation in Austria. We will invest like never before in 5G and fiber. But investing in digital skills is just as important. This task requires the attention of leaders and a structured dialogue at the highest level. All of the actions we are taking clearly show the way forward for markets and investors alike. But as we look to the future, we must also reflect on how the crisis has changed the face of our economy – from deepening debt, to uneven impacts on different sectors, to new ways of working . This is why the Commission will relaunch the discussion on the review of economic governance in the coming weeks. The aim is to reach a consensus on the way forward well in time for 2023. Ladies and gentlemen, We will soon be celebrating 30 years of the single market. For 30 years, it has been the main instrument of progress and prosperity in Europe. From the start of the pandemic, we have defended it against the threat of erosion and fragmentation. For our recovery, the single market is the engine of competitiveness and quality jobs. This is particularly important for the digital single market. We have made ambitious proposals over the past year. To restrict the gatekeeper power enjoyed by large platforms; To confront these platforms with their democratic responsibility; To foster innovation; To harness the power of artificial intelligence. Digital is the decisive issue. And Member States share this view. Spending on the digital strand of NextGenerationEU will even exceed the 20% target. This demonstrates the importance of investing in our European technological sovereignty. We must redouble our efforts to shape our digital transformation according to our own rules and values. If you don't mind, I will take the example of semiconductors, those tiny chips on which the functioning of so many things depends: smartphones, electric scooters, trains or even entire smart factories. Without chips, no digital. And as we speak, entire production lines are already idling despite growing demand – due to a shortage of semiconductors. As global demand has exploded, Europe's share of the entire value chain, from design to manufacturing capacity, has shrunk. We are dependent on the most advanced microprocessors made in Asia. So it's not just about our competitiveness. At stake is also our technological sovereignty. So let's give it our full attention. We will present a new European law on semiconductors. We must combine our world-class research, design and testing capabilities. We need to coordinate EU and Member State investments across the whole value chain. The objective is to create together a European ecosystem of state-of-the-art semiconductors, integrating production. This secures our supplies and will enable us to develop new markets for innovative European technologies. Yes, it is a colossal challenge. And I know some claim it's out of reach. But they were saying the same thing about Galileo 20 years ago. And see what happened. We have given ourselves the means of our ambition. Today, European satellites provide the navigation system used by more than 2 billion smartphones worldwide. We are world leaders. So let's be bold again, this time in the field of semiconductors. Ladies and gentlemen deputies, The pandemic has left deep scars – having a huge impact on our social market economy. Night after night, we were all there – at our windows, outside our doors – cheering on the frontline workers. We all felt how dependent we were on these workers. Of those who devote themselves for a lower salary, less protection and less security. The applause may have faded, but the strength of our emotions must endure. This is why the implementation of the European Pillar of Social Rights is so important. It's about decent jobs, fair working conditions, better health care, and a good balance in life. If the pandemic has taught us one thing, it's the value of time. And that there is no time as precious as the time spent with our loved ones. This is how we will propose a new European healthcare strategy. So that every man and woman can benefit from the best possible care and find the best balance in life. But social fairness is not only a question of time, but also a question of fiscal fairness. In our social market economy, it is good for companies to make a profit. But if they make a profit, it is thanks to the quality of our infrastructures, our social security and our education systems. So it's the least they can do that they pay their fair share. This is why we will continue to fight against tax evasion and fraud. We will introduce a bill targeting the profits hidden behind front companies. And we will do everything we can to seal the historic global agreement on the minimum corporate tax rate. Paying a fair amount of taxes is not only a question of public finances, but above all a simple question of fairness. Ladies and Gentlemen, We have all benefited from the foundations of our European social market economy. And we must ensure that the next generation can build their future. We are in the presence of a young generation, highly educated, extremely talented and highly motivated. From a generation that has sacrificed so much to keep others safe. Youth is – normally – the time of discovery. We have new experiences. We find lifelong friends. We discover our own path. But what have we asked today's young people? To keep social distances, to stay confined and to do school at home. For over a year. This is how everything we do – from the Green Deal to NextGenerationEU – aims to protect their future. This is also why NextGenerationEU must be financed by new own resources on which we are working. But we must also be careful not to create new loopholes. Because Europe needs all its youth. We must encourage those who fall through the cracks. Those who do not have a job. Those who do not receive education or training. For them we will offer a new program – ALMA. ALMA will offer these young people the possibility of temporary work experience in another Member State. Because they too deserve to have an experience like Erasmus. To acquire skills, to create links and forge their own European identity. But, if we want to shape our Union in their image, young people must be able to shape the future of Europe. Our Union must have a soul and a vision that speaks to them. As Jacques Delors asked: What will Europe do if young people do not see in it a collective project and a representation of their own future? This is why we will propose to make 2022 the year of European youth. A year devoted to valuing the young people who have devoted so much to others. And young people must lead the debates of the Conference on the future of Europe. It is their future and it must be their Conference. And as we said at the beginning of the mandate, the Commission will be ready to follow up on the points which will be decided by the Conference. A EUROPE UNITED IN RESPONSIBILITY Ladies and Gentlemen, This is a generation driven by a conscience. They push us to go further and faster to solve the climate crisis. And the events of this summer could only prove them right: Belgium and Germany have been devastated by floods. And forest fires raged from the Greek islands to the hills of France. And if we don't believe our own eyes, just trust science. The United Nations recently published the report of the IPCC, the Intergovernmental Panel on Climate Change. It is the leading scientific authority on climate change. This report leaves no doubt. Climate change is man-made. But it is precisely because it is of human origin that we can do something about it. As I heard it said recently: It's getting hot. Because of U.S. No doubt. The situation is bad. But we can change things. And the change has already begun. This year, Germany registered more electric vehicles than diesel cars in the first half. Poland is today the EU country which exports the most car batteries and electric buses. Another example is the new European Bauhaus, which has ignited the creativity of architects, designers and engineers across our Union. So yes, clearly, change is on the way. This is the very idea of our European Green Deal. Last year, in my speech, I announced the goal of reducing emissions by at least 55% by 2030. Since then, we have – together – translated our climate objectives into legal obligations. The European Union is the first major economy to introduce comprehensive legislation to achieve its goals. You have seen the complexity of the thing. But the goal is simple. We are going to put a price on pollution. We are going to make the energy we use cleaner. We will build smarter cars and cleaner airplanes. And we will ensure that higher climate ambitions are matched by higher social ambition. The ecological transition must be fair. This is why we have proposed a new Social Climate Fund which tackles energy poverty which already affects 34 million Europeans. I am counting on Parliament and on the Member States to maintain the level of ambition of the measures proposed. When it comes to climate change and the environmental crisis, Europe can do a lot. And she will support others. I am proud to announce today that the EU will double its external funding for biodiversity, in particular for the most vulnerable countries. But Europe cannot do everything alone. COP26 in Glasgow will be a moment of truth for the whole world. Major economic powers – such as the United States or Japan – have set themselves climate neutrality targets for 2050 or soon after. These objectives must be supported by concrete plans, drawn up in time for Glasgow. Because the current commitments for 2030 will not make it possible to limit global warming to 1.5 degrees Celsius. Every country has homework! The goals set by President Xi for China are encouraging. However, we call on China to show the same determination when defining the means to achieve its objectives. What a relief for the world if China shows itself able to reach the peak of its emissions by the middle of the decade and stop using coal, on its territory and in other countries. But if each country has duties, the major economies have a special obligation towards the least developed and most vulnerable countries. Climate finance is essential for these countries – to enable them to mitigate or adapt to the effects of climate change. In Mexico City and Paris, the major economic powers pledged to provide $100 billion a year until 2025 to the least developed and most vulnerable countries. We are keeping our commitment. Team Europe gives $25 billion a year. But the gaping hole left by others puts the global goal out of reach. Closing this hole will increase Glasgow's chances of success. My message today is that Europe is ready to do more. We are now going to propose an additional 4 billion euros to finance climate action until 2027. But we also expect an effort from the United States and our other partners. If they close the climate finance gap together, the United States and the European Union would show leadership on climate and send a strong signal to the rest of the world. It's time to act. Ladies and Gentlemen, This economic and climate leadership plays a central role in Europe's global and security objectives. It also testifies more generally to an upheaval in world affairs, as a new international order takes hold. We are entering a new era, the era of hypercompetitiveness. An era where some will stop at nothing to gain influence: promises of vaccines, high-interest loans, missiles or disinformation. An era marked by regional rivalries and by a renewed interest of the great powers for each other. Recent events in Afghanistan are not the cause of this change – they are a symptom of it. First of all, I want to be clear: we stand with the Afghan people. Alongside women and children, magistrates, journalists and human rights defenders. I am thinking in particular of those women judges who today hide from the men they had imprisoned. They are threatened with death because of their contribution to justice and the rule of law. We must help them and we will coordinate all efforts with Member States to bring them to safety. We must continue to support all Afghans in their country and in neighboring countries. We must do everything to avoid the real risk of large-scale famine and humanitarian catastrophe. And we will do our part. We will again increase humanitarian aid for Afghanistan by EUR 100 million. This effort will be part of a new and broader package of assistance to Afghans, which we will be presenting over the next few weeks and which will be the result of all our efforts. Ladies and Gentlemen, The events that unfolded in Afghanistan have been deeply painful for all the families of the men and women who have died in service. We bow to the sacrifice of those soldiers, diplomats and aid workers who gave their lives. For their sacrifice not to be in vain, we must ask ourselves why this mission ended so abruptly. Allies within NATO will have to answer some very troubling questions. But there is simply no security and defense issue for which less cooperation would be the solution. We must invest in our common partnership and leverage each other's unique strengths. That is why we are working with Secretary General Jens Stoltenberg on a new joint EU-NATO statement which we will present before the end of the year. But this is only one part of the equation. Europe can and obviously must be prepared to do more with its own means. But if we want to do more, we must first explain why. I see three main categories. First, we need to ensure stability in our neighborhood and in different regions. We are connected to the world by narrow inlets, stormy seas and vast land borders. Because of this geography, Europe knows better than anyone that if the crisis occurring abroad is not dealt with in time, the crisis will come to us. Secondly, the nature of the threats we face are changing rapidly: from hybrid attacks or cyberattacks to the escalation of the arms race in space. Disruptive technologies have dramatically leveled the way power can now be wielded by rogue states or non-state groups. You no longer need armies or missiles to cause massive damage. You can shut down industrial plants, municipal services and hospitals — all you need is your laptop. You can disrupt an entire electoral process with a smartphone and an internet connection. The third reason is that the European Union is a unique guarantor of security. There will be missions where NATO or the UN will not be present, but where the EU should be. In the field, our soldiers work side by side with police, lawyers and doctors, with humanitarian workers and human rights defenders, with teachers and engineers. We can combine military and civilians, as well as diplomacy and development, and we have a long experience in peacebuilding and peacekeeping. The good news is that over the last few years we have started to develop a European defense ecosystem. But it is the European Defense Union that we need. In recent weeks, expeditionary forces have been the subject of much discussion, focusing on the type of forces and the numbers required: battle groups or a European entry force. There's no question that's part of the debate — and I think it's going to be part of the solution. But the more fundamental question we need to ask ourselves is why it hasn't worked in the past. You can have the most advanced forces in the world — but if you're never ready to use them — what good are they? What we have lacked so far is not just additional capacity, it is political will. And if we develop this political will, we can achieve a lot at EU level. Let me give you three concrete examples: First, we need to lay the foundations for collective decision-making – this is what I call situational awareness. We are hampered if Member States present in the same region do not share at European level the information they have. It is essential to improve intelligence cooperation. But it is not just about intelligence in the narrow sense of the term. It's about bringing together knowledge from all departments and all sources. From space to police force trainers, from open source to development agencies. Their work allows us to obtain knowledge that is unique in both scope and precision. Just collect them! But we can only use them to make informed decisions if we have a complete picture of the situation. But this is not currently the case. We have the knowledge, but it is scattered. Information is fragmented. This is why the EU could consider creating its own common situational awareness centre, in order to bring together all the different pieces of information. And to be better prepared, fully informed and able to make decisions. Second, we need to improve interoperability. This is why we are already investing in common European platforms, from combat aircraft to drones and cyber. But we must continue to think of new ways to exploit all possible synergies. For example, we could consider a VAT exemption for purchases of defense equipment developed and produced in Europe. This would not only increase our interoperability, but also reduce our current dependencies. Thirdly, we cannot talk about defense without talking about cybersecurity. If everything is connected, everything can be hacked. Resources being scarce, we must join forces. And we shouldn't just face cyber threats, we must have the ambition to be at the forefront of cybersecurity. It is here in Europe that cyber defense tools should be developed. This is why we need a European cyber defense policy, including legislation setting common standards under a new European cyber resilience law. So we can do a lot at EU level. But Member States must also do more. It starts with a common assessment of the threats we face and a common approach to addressing them. The upcoming “strategic compass” is a key step in this regard. And we have to decide how we can exploit all the possibilities that are already provided for in the treaty. This is why, during the French Presidency, President Macron and I will organize a European Defense Summit. It is time for Europe to step up a gear. Ladies and Gentlemen, In an increasingly contested world, protecting your interests is not just about defending yourself. It is about forging solid and reliable partnerships. This is not a luxury, it is imperative for our future stability, security and prosperity. The first is to deepen our partnership with our closest allies. Together with the United States, we will shape our new agenda for global change — from the new Trade and Technology Council to health security and sustainability. The EU and the US will always be stronger — together. The same goes for our neighbors in the Western Balkans. Before the end of this month, I will visit the region to send a strong signal of our commitment to the accession process. We owe it to all young people who believe in a European future. That's why we're stepping up our support through our new economic and investment plan, which accounts for around a third of the region's GDP. Because investing in the future of the Western Balkans, it is investing in the future of the EU. And we will also continue to invest in our partnerships throughout our neighbourhood, from strengthening our commitment to the Eastern Partnership to implementing the new Mediterranean program and continuing the work undertaken on the various aspects of our relations with the Turkey. Ladies and Gentlemen, If Europe wants to play a bigger role on the world stage, it must also focus on the next generation of partnerships. In this spirit, the Union's new Indo-Pacific strategy marks a fundamental step. It reflects the region's growing importance to our prosperity and security. But also the fact that autocratic regimes use it to try to extend their influence. Europe must be more present and more active in the region. We will therefore work together to deepen trade ties, strengthen global supply chains and develop new investment projects in green and digital technologies. It is an example of how Europe can rethink its model to connect the world. We are very good at funding roads. But it doesn't make sense for Europe to build a perfect road between a Chinese-owned copper mine and a Chinese-owned port. We have to be smarter about these types of investments. That's why we'll soon be introducing our new connectivity strategy, the Global Gateway. We will establish Global Gateway partnerships with countries around the world. We want investments in quality infrastructure, connecting goods, people and services around the world. We will follow a values-based approach to provide transparency and good governance to our partners. We want to create links not dependencies! And we know how that can work. Since this summer, a new submarine cable connects Brazil to Portugal by fiber optic. We will invest with Africa, to create a green hydrogen market that connects the two shores of the Mediterranean. We need a Team Europe approach to make our Global Gateway work. We will connect institutions and investors, banks and the business community. We will make this issue a priority for regional summits starting with the next EUAfrica summit in February. We want to make our Global Gateway a recognized brand around the world. And I want to be very clear: doing business around the world, global trade is all good and necessary. But never to the detriment of people's dignity and freedom. 25 million people worldwide are at risk of forced labor or are forced into it. We will never accept that they are forced to manufacture products so that these products are then offered for sale here in Europe. We will therefore propose to ban products from our market which have been produced using forced labour. Human rights are not for sale at any price. A EUROPE UNITED IN FREEDOM AND DIVERSITY And, ladies and gentlemen, human rights are not a bargaining chip. Look at what happened on our borders with Belarus. The Minsk regime has instrumentalized human beings. He put them on planes and literally pushed them towards the borders of Europe. This can never be tolerated. And the rapid reaction of Europe shows it. Rest assured: we will continue to stand with Lithuania, Latvia and Poland. And let's call a spade a spade: this is a hybrid attack to destabilize Europe. Ladies and Gentlemen, These are not isolated events. We have witnessed similar incidents at other borders. And expect to see more. That is why, as part of our work on Schengen, we will present new ways of responding to such attacks and of preserving unity in the protection of our external borders. But until we find common ground on how to deal with migration, our opponents will continue to attack it. At the same time, human traffickers continue to exploit people through deadly routes in the Mediterranean. These events show us that each country has an interest in setting up a European migration system. With the new pact on migration and asylum, we have everything we need to manage the different types of situations we face. All the elements are in place. It is a balanced and humane system that works for all Member States in all circumstances. We know we can find common ground. However, in the year since the Commission presented the pact, progress has been painfully slow. I believe it: the time has now come to develop a European migration management policy. I therefore urge you, in this House and in the Member States, to speed up the process. Ultimately, it's a matter of trust. Trust between Member States. Europeans' confidence in our ability to manage migration. Confidence in the fact that Europe will never fail in its immutable duty towards the most vulnerable and deprived. The issue of migration in Europe elicits a lot of very strong views, but I think the common ground is not that far apart. Because if you ask most Europeans, they would agree that we need to act to stem irregular migration, but we also need to act to provide refuge for those forced to flee. They would agree that we should return those who have no right to stay, but that we should welcome those who arrive here legally and make such a vital contribution to our society and our economy. And we should all agree that the issue of migration should never be used to divide. I am convinced that, for Europe, there is a way to build mutual trust on migration. Ladies and Gentlemen, Societies built on democracy and shared values have a stable foundation. They trust people. This is how new ideas can develop, this is how change happens, this is how injustice is overcome. Trust in these shared values brought our founding fathers and mothers together in the aftermath of World War II. And those same values united the freedom fighters who brought down the Iron Curtain more than thirty years ago. They wanted democracy. They wanted free elections, the rule of law, and equality for all before the law. They wanted freedom of speech, and independent media. They wanted to end citizen surveillance of citizens and state espionage, they wanted to fight corruption. They wanted the freedom to be different from the masses. Or, as former Czech President Vaclav Havel summed it up so well, they wanted all those “great European values”. These values are the fruit of Europe's cultural, religious and humanist heritage. They are constitutive of our soul, constitutive of who we are today. They are enshrined in our European treaties. And all of us have made the commitment to respect them when joining this Union as free and sovereign States. We are determined to defend these values. This determination will never waver. Our values are guaranteed by our legal order, and the judgments of the Court of Justice of the European Union ensure that they prevail. These rulings are binding. And we ensure that they are followed by effect. And this in each country of our Union. Because protecting the rule of law isn't just a lofty goal: it's also hard work and a constant struggle for the better. Our rule of law reports, through the reforms they highlight, are an integral part of this process. The reforms of the judicial system initiated in Malta or the investigations into corruption conducted in Slovakia are a good example of this. From 2022, our rule of law reports will also contain concrete recommendations for Member States. Nevertheless, a few Member States have experienced worrying developments. Here, one point is close to my heart: the dialogue is never closed. But it is not enough in itself either, it must lead to a goal. This is why we pursue a dual approach, based on both dialogue and determined action. That's what we've been doing for the past few weeks. And that's what we will continue to do. Because, everywhere in Europe, and whether they are part of the majority or a minority, people must be able to have confidence in their right to independent justice, in their right to equality before the law. Ladies and Gentlemen, The European budget is the future of our Union translated into figures. This is why it must be protected. We must ensure that every euro and every penny is spent wisely and in accordance with the principles of the rule of law. Funds intended to build a better future for our children must not be lost in occult channels. Corruption is not just money stolen from the taxpayer. Corruption drives investors away. Corruption is the buying of convenience with big bucks, and the undermining of democratic rules by the powerful. It is about the defense of our budget, and we will use all the means at our disposal to fight the slightest case of corruption. Ladies and Gentlemen, Defending our values also means defending freedom. The freedom to be who we are, to say what we want, to love who we want. But to be free also means to be free from fear. During the pandemic, too many women have been deprived of this freedom. This period was particularly terrible for all those who had nowhere to take refuge, no place to escape their executioners. We must bring light into this darkness, show a way out of this pain. The executioners must be brought to justice. And women must regain their lives and their freedom of choice. This is why we will propose before the end of the year a law on the fight against violence against women. It is a question of providing effective sanctions, of preventing and protecting, online as well as offline. It is about respecting the dignity of each person, and about justice. For this is the soul of Europe. We need to strengthen it. Ladies and Gentlemen, Allow me to finish by mentioning a freedom that gives voice to all others, and that is freedom of the media. Journalists, women and men, are attacked for the simple reason that they are doing their job. Some are threatened and beaten up, others are tragically murdered. Even within our European Union. I want to recall some names. Daphne Caruana Galizia. Jan Kuciak. Peter deVries. They don't all have the same story. But they have one thing in common: they all fought for the right to information. And they died. Information is a public good. We must defend those who enlighten us: women and men journalists. This is why we have today presented a recommendation for better protection of journalists. And we must stop anyone who threatens media freedom. The media is not like any other business. Their independence is essential. This is why Europe needs a law that guarantees this independence. Next year we will present precisely such a law on freedom of the media. Because, when we defend the freedom of our media, we are also defending our democracy. Conclusion Ladies and Gentlemen, Consolidating Schuman's European ideal that I mentioned earlier requires constant work. And we should not hide our inconsistencies and imperfections from ourselves. But as imperfect as it may be, our Union is both remarkably unique and uniquely remarkable. It is a Union in which we can strengthen our individual freedom through the strength of our community. A Union shaped as much by our shared history and values as by our different cultures and perspectives. A Union with a soul. It is not easy to find the right words to capture this feeling in its essence. It is easier to borrow them from someone who inspires us. And that's why I've invited a guest of honor to join us today. Many of you know this Italian gold medalist who made my heart beat so much this summer. But what you may not know is that, just last April, she learned that her life was on the line. She had to have surgery, she fought, she recovered. And just 119 days after being released from hospital, she won Paralympic gold. Ladies and gentlemen, I invite you to welcome Beatrice Vio with me. Bebe has overcome so many challenges, and at such a young age. His story is one of victory over adversity. From the triumph of talent, tenacity and unwavering positivity. Bebe is the image of his generation: a leader and advocate for the causes she believes in. If she succeeded in all this, it is by remaining faithful to her rule of life: if it seems impossible, then we can do it. Se sembra impossible, allora si può fare. Such is the spirit which animated the founders of Europe and which animates the rising generation of Europeans. Let us be inspired by Bebe and by all these young people who change our perception of the possible. Which show us that we can be what we want to be. And that you can achieve what you believe in./p> Such is the spirit which animated the founders of Europe and which animates the rising generation of Europeans. Let us be inspired by Bebe and by all these young people who change our perception of the possible. Which show us that we can be what we want to be. And that you can achieve what you believe in./p> Such is the spirit which animated the founders of Europe and which animates the rising generation of Europeans. Let us be inspired by Bebe and by all these young people who change our perception of the possible. Which show us that we can be what we want to be. And that you can achieve what you believe in